Gender wage gap: a semi-parametric approach with sample selection correction

"Sizeable gender differences in employment rates are observed in many countries. Sample selection into the workforce might therefore be a relevant issue when estimating gender wage gaps. This paper proposes a new semi-parametric estimator of densities in the presence of covariates which incorpo...

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Bibliographic Details
Main Authors: Picchio, Matteo, Mussida, Chiara
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2010
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19185183124919033659-Gender-wage-gap-a-semi-paramet.htm
Description
Summary:"Sizeable gender differences in employment rates are observed in many countries. Sample selection into the workforce might therefore be a relevant issue when estimating gender wage gaps. This paper proposes a new semi-parametric estimator of densities in the presence of covariates which incorporates sample selection. We describe a simulation algorithm to implement counterfactual comparisons of densities. The proposed methodology is used to investigate the gender wage gap in Italy. It is found that when sample selection is taken into account gender wage gap widens, especially at the bottom of the wage distribution. Explanations are offered for this empirical finding. "
Physical Description:31 p.
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