Identification in Detailed Wage Decompositions
The standard wage decomposition methodology produces arbitrary results when attempting to estimate the separate contributions of sets of dummy variables to the unexplained portion of the wage decomposition: the estimates are not invariant with respect to the choice of reference groups. However, the estimated separate contributions of sets of dummy variables to the explained portion and the overall decomposition are shown not to be dependent upon the choice of left-out reference groups. A similar identification problem applies to continuous variables, although this may not be as likely to cause problems in practice. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Year of publication: |
1999
|
---|---|
Authors: | Oaxaca, Ronald L. ; Ransom, Michael R. |
Published in: |
The Review of Economics and Statistics. - MIT Press. - Vol. 81.1999, 1, p. 154-157
|
Publisher: |
MIT Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Sex differences in pay in a new monopsony model of the labor market
Ransom, Michael R., (2005)
-
Intrafirm Mobility and Sex Differences in Pay
Oaxaca, Ronald L., (2003)
-
Movin' on up: Hierarchical occupational segmentation and gender wage gaps
Shatnawi, Dina, (2012)
- More ...