More on Identification on Detailed Wage Decompositions

Javier Gardeazabal and Arantza Ugidos

No 1988-088X, DFAEII Working Papers from University of the Basque Country - Department of Foundations of Economic Analysis II

Abstract: Wage decompositions are often used to decompose wage differentials of two demographic groups into differences in characteristics and differences in returns to those characteristics. The later part is used as an estimate of the degree of discrimination. A problem with this approach is that the contributions of individual dummy variables to the wage decomposition are not identified. This note proposes a simple solution to the identification problem. The solution is illustrated with an empirical application to Spanish labor market data.

Keywords: wage discrimination; wage decomposition; identification (search for similar items in EconPapers)
Date: 2002-04
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: More on Identification in Detailed Wage Decompositions (2004)
Working Paper: More on identification in detailed wage decompositions
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Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

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