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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Selection trials
T2 - comparing approaches for correcting sample selection bias in evaluating the gender wage gap
AU - Johnes, Geraint
PY - 2019/12/8
Y1 - 2019/12/8
N2 - Ordinary least squares (OLS) estimates of the impact of gender on earnings are potentially biased owing to non-randomness in sample selection. In this note, OLS estimates are compared with the results of two methods that have been proposed to allow for these selection effects – first Heckman’s method and secondly a novel approach based on quantile regression promulgated by D’Haultfoeuille et al. (2018). Estimates are provided for 18 countries over a recent three year period. Differences between the results obtained using the alternative methods are highlighted and explained, with lessons drawn for the application of these techniques in future exercises.
AB - Ordinary least squares (OLS) estimates of the impact of gender on earnings are potentially biased owing to non-randomness in sample selection. In this note, OLS estimates are compared with the results of two methods that have been proposed to allow for these selection effects – first Heckman’s method and secondly a novel approach based on quantile regression promulgated by D’Haultfoeuille et al. (2018). Estimates are provided for 18 countries over a recent three year period. Differences between the results obtained using the alternative methods are highlighted and explained, with lessons drawn for the application of these techniques in future exercises.
KW - gender
KW - wage differential
KW - sample selection
M3 - Journal article
VL - 39
SP - 2746
EP - 2750
JO - Economics Bulletin
JF - Economics Bulletin
SN - 1545-2921
IS - 4
ER -