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Gender wage gap studies : consistency and decomposition

Kunze, Astrid
Working paper
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URI
http://hdl.handle.net/11250/163072
Date
2006-12
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  • Discussion papers (SAM) [586]
Abstract
This paper reviews the empirical literature on the gender wage gap, with particular

attention given to the identification of the key parameters in human capital

wage regression models. This is of great importance in the literature for two main

reasons. First, the main explanatory variables in the wage model, i.e., measures of

work experience and the time-out-of-work, are endogenous. As a result, applying

traditional estimators may lead to inconsistent parameter estimates. Second, empirical

evidence on the gender wage gap hinges on estimates of the parameters of

interest. Accordingly, their economic meaning may be limited by restrictive assumptions

included in wage models. This challenges both researchers and policymakers

who require precise measures of the gender wage gap in order to create and enforce efficient equality policies.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2006:37

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