The gender wage gap under the microscope: methods of measurement

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Chapter 2 in Explaining the Gender Wage Gap, 2023, pp 30-54 from Edward Elgar Publishing

Abstract: Chapter 2 presents the most well-known methods of calculating the gender wage gap and assesses their shortcomings. The most popular method is Blinder-Oaxaca, which, using a regression model, divides the gap into explained and unexplained parts. The most serious of its several shortcomings are that it considers averages of broad aggregates and it compares entities that are not similar. These two shortcomings are overcome by two other groups of methods. The first group consists of quantile methods, such as JMP decomposition and techniques based on a generalised Lorenz curve—for example, the Jenkins method, which allows researchers to calculate wage differences for different parts of the salary distribution. The second group consists of nonparametric methods—that is, weighing techniques and the Ñopo (2004) decomposition, which is based on pairs of employees with the same skills or experience.

Keywords: Economics and Finance; Sociology and Social Policy (search for similar items in EconPapers)
Date: 2023
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