 DETERMINATION OF PARTICIPATION DECISION, HIRING DECISION, AND WAGES IN A DOUBLE SELECTION FRAMEWORK: MALE‐FEMALE WAGE DIFFERENTIALS IN THE U.S. LABOR MARKET REVISITEDMohanty Ms Contemporary Economic Policy, 2001, vol. 19, issue 2, 197-212 Abstract: The magnitude of the male‐female wage differential is known to be highly sensitive to the specification of the wage equations used. An important source of misspecification is the failure to correct the sample selection bias that results from estimating the wage equation obtained through two sequential decisions: the worker's decision to participate in the labor market and the employer's decision to hire. Estimation of the wage equation ignoring this double selection process leads to biased estimates, and consequently the resulting male‐female wage differentials are likely to be misleading. Following a double selection approach and using a sample from the National Longitudinal Survey of Youth, this article examines the determinants of not only the wage equation but also the worker's participation and the employer's hiring decisions in both male and female samples. The study further demonstrates that the unexplained male‐female wage differential remains underestimated when the roles of both selection decisions are ignored in the estimation of wage equations. Date: 2001 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:19:y:2001:i:2:p:197-212 Ordering information: This journal article can be ordered from Access Statistics for this article Contemporary Economic Policy is currently edited by Brad R. Humphreys More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC. |
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