Bounding Estimates of Wage Discrimination

Joseph Hirschberg and Daniel Slottje

No 879, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: The Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can vary dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This paper uses a form of extreme bounds analysis to define the limits on the measure of discrimination that can be obtained from these decompositions. A simple application is presented to demonstrate the use of the bootstrap to define the distributions of the discrimination measure.

Keywords: Extreme Bounds Analysis; Discrimination; Bootstrap (search for similar items in EconPapers)
JEL-codes: C2 J7 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Chapter: BOUNDING ESTIMATES OF WAGE DISCRIMINATION (2004)
Working Paper: Bounding Estimates of Wage Discrimination (2002)
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