Wage differentiation

Essay by 9958521 April 2004

download word file, 19 pages 1.8 1 reviews

Wage Differentials

This a residual research project which examines issues associated with the estimation and interpretation of wage equation. There are three generic research projects in this area: (1) Wage Decomposition Methods; (2) The Gender Wage Gap; and (3) Industry Wage Differentials.

Wage Decomposition Methods

This project generalises existing decomposition techniques into a unified framework. In particular, this paper shows how the work of Oaxaca (1973), Oaxaca and Ransom (1988), Neumark (1988) and Reilly and Wirjanto (1999) are just special cases of what will be referred to as the Complete Decomposition. These decompositions are all based on the notion that you are required to hold either coefficients or means constant. The unification and generalisation follow from eliminating this assumption. Results using the Complete Decomposition are reported in Reilly and Wirjanto (1999b) so the paper being produce as part of this project is providing the logical structure of this decomposition technique.

An application of the Complete Decomposition is supplied using the the United States Current Population Survey (1983-96) which explores the implications of occupational segregation by sex.

Paper in Production: Kevin T. Reilly (2000),A Generalisation of Standard Wage Decomposition Methods.

The Gender Wage Gap

This is a joint project with Luisa Zanchi of Leeds University Business School, Jaume Garcia and Angel Lopez-Nicolas of the Department of Economics Universitat Pompeu Fabra and Pedro J. Hermandez of the Department of Economics Universidad de Murica under the title The Role of Perception of Discrimination in the Gender Wage and Promotion Gap. Funding is being provided by the Spanish Institute for Women to the University of Leeds within the European Commission Framework of Programs and Actions within the Social and Employment Sector (European Union Contract Number: VS/2001/0497). Period of project is December 2001 to December 2002 and the contract value to the...