EconPapers    
Economics at your fingertips  
 

Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands

James Albrecht (), Aico van Vuuren () and Susan Vroman ()

Labour Economics, 2009, vol. 16, issue 4, 383-396

Abstract: Several recent papers use the quantile regression decomposition method of Machado and Mata [Machado, J.A.F. and Mata, J. (2005). Counterfactual decomposition of changes in wage distributions using quantile regression, Journal of Applied Econometrics, 20, 445-65.] to analyze the gender gap across log wage distributions. In this paper, we prove that this procedure yields consistent and asymptotically normal estimates of the quantiles of the counterfactual distribution that it is designed to simulate. Since employment rates often differ substantially by gender, sample selection is potentially a serious issue for such studies. To address this issue, we extend the Machado-Mata technique to account for selection. We illustrate our approach to adjusting for sample selection by analyzing the gender log wage gap for full-time workers in the Netherlands.

Keywords: Gender; Quantile; regression; Selection (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (97) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927-5371(09)00004-9
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Counterfactual Distributions with Sample Selection Adjustments: Econometric Theory and an Application to the Netherlands (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:16:y:2009:i:4:p:383-396

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-10-13
Handle: RePEc:eee:labeco:v:16:y:2009:i:4:p:383-396