Gender Wage Gap: A Semi-Parametric Approach with Sample Selection Correction

CentER Discussion Paper Series No. 2010-16

33 Pages Posted: 19 Feb 2010 Last revised: 2 Mar 2010

See all articles by Matteo Picchio

Matteo Picchio

Marche Polytechnic University - Department of Economic and Social Science; IZA Institute of Labor Economics; SHERPPA - Ghent University

Chiara Mussida

Università Cattolica del Sacro Cuore

Multiple version iconThere are 2 versions of this paper

Date Written: February 12, 2010

Abstract

Sizeable gender differences in employment rates are observed in many countries. Sample selection into the workforce might therefore be a relevant issue when estimating gender wage gaps. This paper proposes a new semi-parametric estimator of densities in the presence of covariates which incorporates sample selection. We describe a simulation algorithm to implement counterfactual comparisons of densities. The proposed methodology is used to investigate the gender wage gap in Italy. It is found that when sample selection is taken into account gender wage gap widens, especially at the bottom of the wage distribution. Explanations are offered for this empirical finding.

Keywords: gender wage gap, hazard function, sample selection, glass ceiling, sticky floor

JEL Classification: C21, C41, J16, J31, J71

Suggested Citation

Picchio, Matteo and Mussida, Chiara, Gender Wage Gap: A Semi-Parametric Approach with Sample Selection Correction (February 12, 2010). CentER Discussion Paper Series No. 2010-16, Available at SSRN: https://ssrn.com/abstract=1554865 or http://dx.doi.org/10.2139/ssrn.1554865

Matteo Picchio (Contact Author)

Marche Polytechnic University - Department of Economic and Social Science ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
+39 071 220 7176 (Phone)

HOME PAGE: http://www.univpm.it/matteo.picchio

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

SHERPPA - Ghent University ( email )

Tweekerkenstraat 2
Ghent, B-9000
Belgium

Chiara Mussida

Università Cattolica del Sacro Cuore ( email )

Emilia Parmense, 84
Piacenza, PC 29122
Italy

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