Bayesian Inference for Distributional Changes: The Effect of Western TV on Wage Inequality and Female Participation in Former East Germany

Edwin Fourrier-Nicolaï and Michel Lubrano

No 2027, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper investigates the evolution of wage formation in a Mincer model with sample selection for which we develop Bayesian inference and growth incidence and poverty growth curves. We estimate the effect of an exogenous exposure to Western TV broadcasts on labour market participation and wage inequality in East Germany after the German reunification. Using the GSOEP, we find evidences that Western television had significantly increased wage inequality among males while it has significantly affected female labour participation and led the less productive females to drop out from the market, hiding thus a large increase in wage inequality among females.

Keywords: Bayesian inference; labour market; distributional changes; sample selection; wage inequality (search for similar items in EconPapers)
JEL-codes: C11 C24 D31 D91 J21 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2020-07
New Economics Papers: this item is included in nep-lma and nep-ore
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Working Paper: Bayesian Inference for Distributional Changes: The Effect of Western TV on Wage Inequality and Female Participation in Former East Germany (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:2027

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