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Wage Decompositions Using Panel Data Sample Selection Correction

Ronald Oaxaca and Chung Choe ()

No 10157, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyzes wage decomposition methodology in the context of panel data sample selection embedded in a correlated random effects setting. Identification issues unique to panel data are examined for their implications for wage decompositions. As an empirical example, we apply our methodology to German Socio-Economic Panel (GSOEP) data with which we investigate gender wage differentials in the German Labor Market. Our results highlight the sensitivity of inferences about potential discrimination to how elements of the panel data selection model are assigned to explained and unexplained components.

Keywords: decomposition; panel data; GSOEP; sample selection (search for similar items in EconPapers)
JEL-codes: J31 J71 C00 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-08
New Economics Papers: this item is included in nep-ecm and nep-lma
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Citations: View citations in EconPapers (6) Track citations by RSS feed

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