Gender Wage Gap: A Semi-Parametric Approach With Sample Selection Correction

M. Picchio, C. Mussida

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Abstract

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.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages33
Volume2010-16
Publication statusPublished - 2010

Publication series

NameCentER Discussion Paper
Volume2010-16

Keywords

  • gender wage gap
  • hazard function
  • sample selection
  • glass ceiling
  • sticky floor

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    Picchio, M., & Mussida, C. (2010). Gender Wage Gap: A Semi-Parametric Approach With Sample Selection Correction. (CentER Discussion Paper; Vol. 2010-16). Microeconomics.