Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds

Richard Blundell (), Amanda Gosling, Hidehiko Ichimura and Costas Meghir

No 1350, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines changes in the distribution of wages using bounds to allow for the impact of non-random selection into work. We show that bounds constructed without any economic or statistical assumptions can be informative. However, since employment rates in the UK are often low they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions we find convincing evidence of an increase in inequality within education groups, changes in the “return” to education and increases in the relative wages of women.

Keywords: wage differentials; selection models; bounds (search for similar items in EconPapers)
JEL-codes: C24 J31 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2004-10
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (40)

Published - published in: Econometrica, 2007, 75(2), 323–363

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Related works:
Journal Article: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2007)
Working Paper: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2006)
Working Paper: Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds (2004)
Working Paper: Changes in the distribution of male and female wages accounting for employment composition using bounds (2004)
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