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Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds

Author

Listed:
  • Richard Blundell

    (Department of Economics, University College London and IFS)

  • Amanda Gosling

    (Department of Economics, Essex Univeristy, IFS and CEPR)

  • Hidehiko Ichimura

    (Faculty of Economics, University of Tokyo and RIETI)

  • Costas Meghir

    (Department of Economics, University College London, IFS and CEPR)

Abstract

This paper examines changes in the distribution of wages using bounds to allow for the impact of non-random selection into work. We show that worst case bounds can be informative. However, since employment rates in the UK are often low they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions we find convincing evidence of an increase in inequality within education groups, changes in educational differentials and increases in the relative wages of women.

Suggested Citation

  • Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2006. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CIRJE F-Series CIRJE-F-420, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2006cf420
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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