Endogenous Schooling and the Distribution of the Gender Wage Gap

Jorgen Hansen and Roger Wahlberg
Additional contact information
Roger Wahlberg: University of Gothenburg

No 78, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Previous studies on gender wage discrimination have relied on OLS when estimating the wage equations. However, there exists a number of recent studies, devoted to estimating the return to education, that have shown that OLS may produce biased estimates for a number of reasons. Consequently, if we neglect this potential bias in OLS when estimating the gender wage gap, there is every reason to believe that the estimated wage gaps will also be biased. We first estimate wage equations using instrumental variables procedures and panel data, and then investigate the distributions of wage discrimination experienced. We find overwhelming evidence that OLS seriously overestimate the unexplained gender wage gap.

Keywords: individual effects; panel data; endogenous schooling; Return to education; distribution of discrimination (search for similar items in EconPapers)
JEL-codes: J3 J7 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1999-12
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Published - published in: Empirical Economics, 2005, 30 (1), 1-22

Downloads: (external link)
https://docs.iza.org/dp78.pdf (application/pdf)

Related works:
Journal Article: Endogenous schooling and the distribution of the gender wage gap (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp78

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().