Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia

Federal Reserve Bank of St. Louis Working Paper No. 2010-045A

23 Pages Posted: 30 Oct 2010

See all articles by Alejandro Badel

Alejandro Badel

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Ximena Pena

Universidad de los Andes, Colombia

Multiple version iconThere are 2 versions of this paper

Date Written: October 29, 2010

Abstract

Despite the remarkable improvement of female labor market characteristics, a sizeable gender wage gap exists in Colombia. We employ quantile regression techniques to examine the degree to which current small differences in the distribution of observable characteristics can explain the gender gap. We find that the gap is largely explained by gender differences in the rewards to labor market characteristics and not by differences in the distribution of characteristics. We claim that Colombian women experience both a “glass ceiling effect’’ and also (what we call) a “quicksand floor effect” because gender differences in returns to characteristics primarily affect women at the top and the bottom of the distribution. Also, self selection into the labor force is crucial for gender gaps: if all women participated in the labor force, the observed gap would be roughly 50% larger at all quantiles.

Keywords: Gender Gap, Mincer, Wage, Semiparametric, Quantile Regression, Selection

JEL Classification: C21, J22, J31

Suggested Citation

Badel, Alejandro and Pena, Ximena, Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia (October 29, 2010). Federal Reserve Bank of St. Louis Working Paper No. 2010-045A, Available at SSRN: https://ssrn.com/abstract=1699771 or http://dx.doi.org/10.2139/ssrn.1699771

Alejandro Badel (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States

Ximena Pena

Universidad de los Andes, Colombia ( email )

Carrera Primera # 18A-12
Bogota, DC D.C. 110311
Colombia

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