Econometrica Vol. 75 No. 2 2007

Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using�Bounds

Richard Blundell^1,2; Amanda Gosling^1,3; Hidehiko Ichimura⁴; Costas Meghir^1,2,5

¹ Institute for Fiscal Studies · ² University College London · ³ University of Kent · ⁴ The University of Tokyo · ⁵ EU Business School, Geneva

Abstract

This paper examines changes in the distribution of wages using bounds to allow for the impact of nonrandom selection into work. We show that worst case bounds can be informative. However, because employment rates in the United Kingdom are often low, they are not informative about changes in educational or gender wage differentials. Thus we explore ways to tighten these bounds using restrictions motivated from economic theory. With these assumptions, we find convincing evidence of an increase in inequality within education groups, changes in educational differentials, and increases in the relative wages of women.

DOI

10.1111/j.1468-0262.2006.00750.x

Volume

75

Issue

2

Pages

323-363

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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