Endogenous schooling and the distribution of the gender wage gap

Jorgen Hansen and Roger Wahlberg ()

Empirical Economics, 2005, vol. 30, issue 1, 22 pages

Abstract: Previous studies on the gender wage gap have relied on OLS when estimating the wage equations. However, a number of recent studies, devoted to estimating the return to education, have shown that OLS may produce biased estimates for a number of reasons. As a consequence, previous results regarding the gender wage gap may also be biased. In this paper, we first estimate wage equations using a GMM procedure applied to panel data and then investigate the distribution of the gender wage gap. The results indicate that OLS may seriously overestimate the unexplained gender wage gap. Copyright Springer-Verlag 2005

Keywords: Return to education; endogenous schooling; panel data; unobserved heterogeneity; distribution of wage gap; J3; J7 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (5)

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Working Paper: Endogenous Schooling and the Distribution of the Gender Wage Gap (1999)
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DOI: 10.1007/s00181-004-0218-4

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