Selection , Heterogeneity and the Gender Wage Gap ∗
نویسندگان
چکیده
Usual estimates of the female-male wage gap may be biased because female selection could be different in different parts of the labor market. This paper proposes an estimator for the wage gap in models with unobserved heterogeneity in the selection rule. It applies to the subpopulation of “always employed” women, which is similar to men in labor force attachment. Using CPS data from 1976 to 2005, I show that the gap has narrowed substantially from a -.521 to a -.263 log wage points. In the presence of heterogeneity, focusing on the proposed estimator is less distorting than usual selection corrections. JEL: J31, J16, J24
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