BOUNDING ESTIMATES OF WAGE DISCRIMINATION

Joseph Hirschberg and Daniel Slottje

A chapter in Accounting for Worker Well-Being, 2004, pp 215-233 from Emerald Group Publishing Limited

Abstract: The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can very dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This paper uses a form of extreme bounds analysis to define the limits on the measure of discrimination that can be obtained from these decompositions. A simple application is presented to demonstrate the use of the bootstrap to define the distributions of the discrimination measure.

Date: 2004
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Related works:
Working Paper: Bounding Estimates of Wage Discrimination (2003)
Working Paper: Bounding Estimates of Wage Discrimination (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rleczz:s0147-9121(04)23006-0

DOI: 10.1016/S0147-9121(04)23006-0

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