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Matching as a tool to decompose wage gaps

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dc.creator Ñopo, Hugo
dc.date 2004
dc.date.accessioned 2013-10-16T07:09:22Z
dc.date.available 2013-10-16T07:09:22Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20217
dc.identifier ppn:377981354
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20217
dc.description In this paper I present a methodology that uses matching comparisons to explain gender differences in wages. The approach emphasizes gender differences in the supports of the distributions of observable characteristics and provides useful insights about the distribution of the unexplained gender differences in pay. The proposed methodology, a non-parametric alternative to the Blinder-Oaxaca (BO) wage gap decomposition, does not require the estimation of earnings equations. It breaks down the gap into four additive elements, two of which are analogous to the elements of the BO decomposition (but computed only over the common support of the distributions of characteristics), while the other two account for differences in the supports. Using data for Peru in the period 1986-2000, I found that this problem of non-comparability accounts for 23% and 30% of the male and female working populations respectively. The matching methodology allows us to quantify the effect of explicitly recognizing these differences in the supports. In this way, the 45% gender wage gap in Peru is decomposed as: 11% explained by differences in the supports, 6% explained by differences in the distributions of individual characteristics and the remaining 28% cannot be explained by differences in observable individuals? characteristics. Approximately half of the latter is due to unexplained differences in the highest quintile of the wage distribution.
dc.language eng
dc.relation IZA Discussion paper series 981
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J16
dc.subject C14
dc.subject O54
dc.subject D31
dc.subject ddc:330
dc.subject matching
dc.subject non-parametric
dc.subject gender wage gap
dc.subject Latin America
dc.subject Lohndifferenzierung
dc.subject Geschlechterdiskriminierung
dc.subject Matching
dc.subject Schätzung
dc.subject Peru
dc.title Matching as a tool to decompose wage gaps
dc.type doc-type:workingPaper
dc.coverage 1986-2000

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