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American Economic Review Vol. 101 No. 3 2011

Applying Fixed Effects to Hierarchical Segregation Models

Dina Shatnawi1; Ronald L. Oaxaca2; Michael R. Ransom3

1 Naval Postgraduate School, Ingersoll Hall, Room 231, 555 Dyer Road, Monterey, CA 93943. · 2 University of Arizona, 1130 E. Helen St., PO Box 210108, Tucson, Arizona 85721. · 3 Brigham Young University, 143 FOB, Brigham Young University, Provo, UT 84602.

Abstract

This paper expands the empirical implementation of hierarchical segregation models to allow for the use of panel methods. We use firm level data collected between 1977 and 1985 from a regional grocery store that faced a title VII class-action lawsuit over gender discrimination much the same as Wal-Mart and Costco. Special problems arise in implementing decompositions in a fixed effects and random effects setting, especially when analyzing wage-level differences. We develop a variation of wage decompositions that takes into consideration an unbalanced design and extends the literature by explicitly formalizing the inclusion of the unobserved heterogeneous effects.

DOI
10.1257/aer.101.3.588
Volume
101
Issue
3
Pages
588-592
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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