CIRJE-F-420 | "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds" |
Author Name | Blundell, Richard, Amanda Gosling, Hidehiko Ichimura and Costas Meghir |
Date | April 2006 |
Full Paper | PDF file@ |
Remarks | @Subsequently published in Econometrica75-2, 323-363, 2007. |
Abstract |
This paper examines changes in the distribution of wages using bounds to allow for the
impact of non-random selection into work. We show that worst case bounds can be infor-
mative. However, since employment rates in the UK are often low they are not informative
about changes in educational or gender wage di
erentials. Thus we explore ways to tighten
these bounds using restrictions motivated from economic theory. With these assumptions
we
nd convincing evidence of an increase in inequality within education groups, changes in
educational di
erentials and increases in the relative wages of women.
|