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Towards a broader explanation of male-female wage differences

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  • David (David Patrick) Madden

Abstract

Most analyses of wage discrimination have followed the traditional Blinder-Oaxaca decomposition of wage differences into endowment and discrimination components. This approach has neglected the possibility of wage discrimination at point of entry to the labour market and also the issue of selectivity bias. Using some recently developed techniques of Neumann and Oaxaca this paper decomposes male-female wage differences taking account of discrimination in terms of access to the labour market and also selectivity bias. It finds considerable evidence of discrimination at point of entry but that discrimination owing to selectivity bias is minimal.

Suggested Citation

  • David (David Patrick) Madden, 1999. "Towards a broader explanation of male-female wage differences," Working Papers 199911, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:199911
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    File URL: http://hdl.handle.net/10197/773
    File Function: First version, 1999
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    References listed on IDEAS

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    1. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April.
    2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    3. Neuman, Shoshana & Oaxaca, Ronald L, 1998. "Estimating Labour Market Discrimination with Selectivity Corrected Wage Equations: Methodological Considerations and an Illustration from Israel," CEPR Discussion Papers 1915, C.E.P.R. Discussion Papers.
    4. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
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    Cited by:

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    2. Peter Huber & Ulrike Huemer, 2009. "What Causes Gender Differences in the Participation and Intensity of Lifelong Learning?," WIFO Working Papers 353, WIFO.
    3. Tilahun Temesgen, 2006. "Decomposing Gender Wage Differentials in Urban Ethiopia: Evidence from Linked Employer-Employee (LEE) Manufacturing Survey Data," Global Economic Review, Taylor & Francis Journals, vol. 35(1), pages 43-66.

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    More about this item

    Keywords

    Discrimination; Selectivity; Wages--Sex differences; Sex discrimination in employment;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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