Applying Fixed Effects to Hierarchical Segregation Models
Ronald Oaxaca and
Michael Ransom ()
American Economic Review, 2011, vol. 101, issue 3, 588-92
This paper expands the empirical implementation of hierarchical segregation models to allow for the use of panel methods. We use firm level data collected between 1977 and 1985 from a regional grocery store that faced a title VII class-action lawsuit over gender discrimination much the same as Wal-Mart and Costco. Special problems arise in implementing decompositions in a fixed effects and random effects setting, especially when analyzing wage-level differences. We develop a variation of wage decompositions that takes into consideration an unbalanced design and extends the literature by explicitly formalizing the inclusion of the unobserved heterogeneous effects.
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Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:101:y:2011:i:3:p:588-92
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