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Bootstrapping the European Gender Wage Gap

Author

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  • Eva Rueckert
Abstract
This paper investigates the gender wage gap in Denmark, the Netherlands, France and Spain by bootstrapping the Oaxaca-Blinder decomposition. The bootstrap method is used to compute confidence intervals and to perform hypothesis tests for the (disaggregated) explained and unexplained components of the national earnings di?erentials between men and women. From the subset of paid employees selected from the European Community Household Panel (ECHP) it is revealed that the respective national gender wage gaps are significant at the 5% level. The empirical bootstrap distribution of the male-female earnings di?erential reveals that the average di?erentials of the four selected countries lie very close together, whereas the bootstrap standard deviations of the gaps do not agree.

Suggested Citation

  • Eva Rueckert, 2003. "Bootstrapping the European Gender Wage Gap," Working Papers E04, Department of Economics, School of Management and Languages, Heriot Watt University.
    • Handle: RePEc:hwe:hwecwp:2003-e04
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    File URL: http://www2.hw.ac.uk/sml/downloads/economics/DP2003-E04.pdf
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    References listed on IDEAS

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    1. Dekkers, G.J.M. & Nelissen, J.H.M., 2001. "The Components of Income Inequality in Belgium : Applying the Shorrocks-Decomposition with Bootstrapping," Other publications TiSEM 4b9c6b62-0382-40eb-9b5c-9, Tilburg University, School of Economics and Management.
    2. Machin, Stephen & Puhani, Patrick A., 2003. "Subject of degree and the gender wage differential: evidence from the UK and Germany," Economics Letters, Elsevier, vol. 79(3), pages 393-400, June.
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    4. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
    5. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    6. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    7. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    8. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Cited by:

    1. E. Anthon Eff & Steven G. Livingston, 2007. "Is There A Rural/Urban Export Gap?," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 339-363, May.

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    More about this item

    Keywords

    Gender Wage Gap; ECHP; Bootstrapping;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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