The major contribution of this paper is finding a new and general approach to decomposing log-wage differentials when selection effects are present. We divide the observed log-wage differentials between two groups into 1) differentials in predicted log-wages computed using observed individual...

We introduce a structural model which jointly estimates the full-time wage premium and female labor supply, using the piecewise-linear budget constraint method. Our model incorporates a discontinuous budget line at cut-off hours (35 hours a week), caused by the coexistence of both full- and...

Women have always earned less than men, with men's greater physical strength explaining a large portion of the difference. This raises the question of why the gender gap did not disappear when the importance of physical strength waned with the emergence of the modern labor market. This paper...

We examine the labor market performance of return migrants using the Hungarian Household Panel Survey. Two distinct selection issues are considered in the estimation of the earnings equation; we implement a natural method using MLE. The result that there is a 'premium' to work experience abroad...