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Immigrants to Australia are selected on observable characteristics. They may also differ from natives on unobservable characteristics such as ambition or motivation. If we account for unobservable differences, we find a wage gap for immigrant men from English speaking backgrounds, in contrast...
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We use a semi-parametric method to decompose the difference in male and female wage densities into two parts - one explained by characteristics and one which is attributable to differences in returns to characteristics. We learn substantially more about the gender wage gap in France through this...
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