Generalized measures of wage differentials

Philippe Van Kerm ()

No 2009-08, IRISS Working Paper Series from IRISS at CEPS/INSTEAD

Abstract: This paper considers new 'distributionally sensitive' summary measures of wage differentials, not solely determined by "the average wage of the average person" but by differences across complete wage distributions. Considerations of risk or inequality aversion in the assessment of wage differentials are explicitly included, transplanting expected utility concepts familiar to income distribution analysts. In an application to the gender pay gap in Luxembourg the disadvantage of women persists with the new generalized measures of wage differentials. This suggests that lower average wages for women are not compensated by less dispersed distributions. The paper also illustrates original estimation of wage distributions in the presence of covariates and under endogenous labour market participation.

Keywords: wage differentials; discrimination; expected utility; Singh-Maddala; Luxembourg (search for similar items in EconPapers)
JEL-codes: D63 J31 J70 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab, nep-ltv and nep-upt
Date: 2009-08
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Working Paper: Generalized measures of wage differentials (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:irs:iriswp:2009-08

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