Bias in Longitudinal Estimation of Wage Gaps

15 Pages Posted: 28 Dec 2006 Last revised: 31 Aug 2010

See all articles by Gary Solon

Gary Solon

University of Arizona; National Bureau of Economic Research (NBER)

Date Written: June 1986

Abstract

Cross-sectional regression analyses of wage gaps may be biased by omission of unobserved worker characteristics. Recent studies therefore have used longitudinal data to "difference out" the effects of such variables. This paper. however. shows that self-selection of job changers may cause longitudinal estimation of wage gaps to be inconsistent.

Suggested Citation

Solon, Gary, Bias in Longitudinal Estimation of Wage Gaps (June 1986). NBER Working Paper No. t0058. Available at SSRN: https://ssrn.com/abstract=579748

Gary Solon (Contact Author)

University of Arizona ( email )

Department of Economics
Eller College of Management
Tucson, AZ 85719
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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