Journal Article
Changes in the distribution of male and female wages accounting for employment composition using bounds
Authors
Publication date
2007
Abstract
This paper examines changes in the distribution of wages using bounds to allow for the impact of nonrandom selection into work. We show that worst case bounds can be informative. However, because employment rates in the United Kingdom are often low, they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions, we find convincing evidence of an increase in inequality within education groups, changes in educational differentials, and increases in the relative wages of women.
Published in
Econometrica
Volume
75 (2):323-363
Subjects
Labour Market and Wages And Earnings
Links
http://serlib0.essex.ac.uk/search/s?SEARCH=econometrica&sortdropdown=-&submit=Submit
Notes
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