Abstract.
Previous studies on the gender wage gap have relied on OLS when estimating the wage equations. However, a number of recent studies, devoted to estimating the return to education, have shown that OLS may produce biased estimates for a number of reasons. As a consequence, previous results regarding the gender wage gap may also be biased. In this paper, we first estimate wage equations using a GMM procedure applied to panel data and then investigate the distribution of the gender wage gap. The results indicate that OLS may seriously overestimate the unexplained gender wage gap.
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First version received: October 2001/Final version accepted: July 2003
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Hansen, J., Wahlberg, R. Endogenous schooling and the distribution of the gender wage gap. Empirical Economics 30, 1–22 (2005). https://doi.org/10.1007/s00181-004-0218-4
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DOI: https://doi.org/10.1007/s00181-004-0218-4