Selection, Heterogeneity and the Gender Wage Gap

64 Pages Posted: 17 Nov 2012

Abstract

Selection correction methods usually make assumptions about selection itself. In the case of gender wage gap estimation, those assumptions are specially tenuous because of high female non-participation and because selection could be different in different parts of the labor market. This paper proposes an estimator for the wage gap that allows for arbitrary heterogeneity in selection. It applies to the subpopulation of "always employed" women, which is similar to men in labor force attachment. Using CPS data from 1976 to 2005, I show that the gap has narrowed substantially from a -.521 to a -.263 log wage points differential for this population.

Keywords: selection, gender wage gap

JEL Classification: J31, J16, J24

Suggested Citation

Machado, Cecilia, Selection, Heterogeneity and the Gender Wage Gap. IZA Discussion Paper No. 7005, Available at SSRN: https://ssrn.com/abstract=2177203 or http://dx.doi.org/10.2139/ssrn.2177203

Cecilia Machado (Contact Author)

Getulio Vargas Foundation (FGV) ( email )

R. Dr. Neto de Araujo 320 cj 1307
Rio de Janeiro, Rio de Janeiro 22250-900
Brazil

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