The multiple dimensions of selection into employment

Kenza Elass ()
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Kenza Elass: Aix-Marseille Univ, CNRS, AMSE, Marseille, France.

No 2219, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: A vast literature on gender wage gaps has examined the importance of selection into employment. However, most analyses have focused only on female labour force participation and gaps at the median. The Great Recession questions this approach both because of the major shift in male employment that it implied but also because women's decisions to participate seem to have been different along the distribution, particularly due to an "added worker effect". This paper uses the methodology proposed by Arellano and Bonhomme (2017) to estimate a quantile selection model over the period 2007-2018. Using a tax and benefit microsimulation model, I compute an instrument capturing the male selection induced by the crisis as well as female decisions: the potential out-of-work income. Since my instrument is crucially determined by the welfare state, I consider three countries with notably different benefit systems-the UK, France and Finland. My results imply different selection patterns across countries and a sizeable male selection in France and the UK. Correction for selection bias lowers the gender wage gap and, in most recent years, reveals an increasing shape of gender gap distribution with a substantial glass ceiling for the three countries.

Keywords: gender wage gap; sample selection; quantile selection model; wage inequality; quantiles; selection; glass ceilings; sticky floors (search for similar items in EconPapers)
JEL-codes: C21 J16 J21 J31 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2022-09
New Economics Papers: this item is included in nep-cmp, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:2219

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