Differences in Positions Along a Hierarchy: Counterfactuals Based on an Assignment Model

64 Pages Posted: 1 May 2017

See all articles by Laurent Gobillon

Laurent Gobillon

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); National Institute of Demographic Studies (INED)

Dominique Meurs

University of Paris II Pantheon-Assas - ERMES

Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Abstract

We propose an assignment model in which positions along a hierarchy are attributed to individuals depending on their characteristics. Our theoretical framework can be used to study differences in assignment and outcomes across groups and we show how it can motivate decomposition and counterfactual exercises. It constitutes an alternative to more descriptive methods such as Oaxaca decompositions and quantile counterfactual approaches. In an application, we study gender disparities in the public and private sectors with a French exhaustive administrative dataset.Whereas females are believed to be treated more fairly in the public sector, we find that the gender gap in propensity to get job positions along the wage distribution is rather similar in the two sectors. The gender wage gap in the public sector is 13% and it increases by only 0.7 percentage points when workers are assigned to job positions according to the rules of the private sector. Nevertheless, the gender gap at the last decile in the public sector increases by as much as 3.6 percentage points when using the assignment rules of the private sector.

Keywords: gender, wages, counterfactuals, distributions, assignment, public sector

JEL Classification: C51, J31, J45

Suggested Citation

Gobillon, Laurent and Meurs, Dominique and Roux, Sébastien, Differences in Positions Along a Hierarchy: Counterfactuals Based on an Assignment Model. IZA Discussion Paper No. 10726, Available at SSRN: https://ssrn.com/abstract=2960535 or http://dx.doi.org/10.2139/ssrn.2960535

Laurent Gobillon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

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National Institute of Demographic Studies (INED) ( email )

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Paris cedex 20, France 75980
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HOME PAGE: http://laurent.gobillon.free.fr/

Dominique Meurs

University of Paris II Pantheon-Assas - ERMES ( email )

12 Place du Panthéon
Paris, Cedex 5, 75005
France

Sébastien Roux

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

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