published in: Empirical Economics, 2005, 30 (1), 1-22
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.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.