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Journal of Labor Economics Vol. 42 No. 4 2024

The Impact of Selection into the Labor Force on the Gender Wage Gap

Francine D. Blau1,2,3,4,5; Lawrence M. Kahn3,4,5,6; Nikolai Boboshko5; Matthew Comey5

1 German Institute for Economic Research · 2 National Bureau of Economic Research · 3 Ifo Institute for Economic Research · 4 IZA - Institute of Labor Economics · 5 Cornell University · 6 New York State School of Industrial and Labor Relations

open access

Abstract

Using Michigan Panel Study of Income Dynamics data, we study selection bias and the gender wage gap. Employing several methods, we find large declines in the total and unexplained gender gaps in wage offers between 1981 and 2015. Under our preferred selection correction method, the median total and unexplained gaps fell by 0.378 and 0.204 log points, respectively. These are larger declines than if we had not corrected for selection and simply measured convergence in observed wage gaps. However, substantial selectivity-corrected median gender wage gaps remain in 2015: 0.242 log points (total gap) and 0.206 log points (unexplained gap).

DOI
10.1086/725032
Volume
42
Issue
4
Pages
1093-1133
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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