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Measuring the gender gap at different quantiles of the wage distribution

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  • Economics

Abstract

qrgengap.PDF ESTUDIOS SOBRE LA ECONOMIA ESPAÑOLA Measuring the gender gap at different quantiles of the wages distribution Javier Gardeazabal Arantza Ugidos EEE 108 June 2001 http://www.fedea.es/hojas/publicado.html Measuring the gender gap at di¤erent quantiles of the wage distribution. Javier Gardeazabal and Arantza Ugidos¤yz Universidad del País Vasco Abstract In this paper we study gender wage discrimination. We use quan- tile regression to study the e¤ect of individual characteristics on wages at various points of the distribution of wages. A simple extension of Oaxaca’s mean gender wage gap decomposition is developed. We pro- pose two measures of discrimination, one in absolute terms and the other in relative terms. Using the Spanish sample of the Survey of Wage Structure we …nd that returns to characteristics vary across quantiles and gender. Discrimination measured in absolute terms in- creases as we move to higher quantiles. However, discrimination mea- sured as a fraction of the gender wage gap decreases as one moves from low to higher quantiles. ¤Javier Gardeazabal, Departamento de Fundamentos del Análisis Económico, Univer- sidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain, E-mail: jepga- [email protected] yArantza Ugidos, Departamento de Fundamentos del Análisis Económico, Universi- dad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain, E-mail: jepu- [email protected] zWe would like to thank Alberto Abadie, Teo Pérez Amaral and seminar participants at Universidad Complutense de Madrid and Universidad de Valencia. Financial support from The Basque Government ######## and The Spanish Ministry of Education ########## is gratefully acknowledged. 1 1 Introduction The approach most widely used in measuring the extent of gender wage dis- crimination is based on the human capital theory of wage determination. According to human capital theory wages are tied to productivity. In a non-discriminatory environment, the obse

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