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Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds

Richard Blundell (), Amanda Gosling (), Hidehiko Ichimura and Costas Meghir ()

No 4705, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper examines changes in the distribution of wages using bounds to allow for the impact of non-random selection into work. We show that bounds constructed without any economic or statistical assumptions can be informative. Since employment rates in the UK are often low they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions we find convincing evidence of an increase in inequality within education groups, changes in the ‘return’ to education and increases in the relative wages of women.

Keywords: bounds; selection models; wage differentials (search for similar items in EconPapers)
JEL-codes: C24 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ltv
Date: 2004-10
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Related works:
Working Paper: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2006) Downloads
Working Paper: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2004) Downloads
Working Paper: Changes in the distribution of male and female wages accounting for employment composition using bounds (2004) Downloads
Journal Article: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2007) Downloads
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