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Wage differentials by gender in Venezuela (1997-1998): A two-step estimation approach

Author

Listed:
  • Geniled Pabón Valiente

    (Economista)

  • Josefa Ramoni Perazzi

    (Universidad de Los Andes. Departamento de Economía.)

Abstract

This paper uses the information provided by the Household Sample Survey (1997-1998) to develop a model to explain the structure of wages by gender in Venezuela, taking into account variables such as sector of employment, age, education, among others, using the two-step method suggested by Heckman. Next, the study attempts to quantify, if any, the magnitude of the wage differential between the two groups and whether this is due to differences in the returns to human capital. Main results indicate a positive wage differential favoring women. This differential can be explained not only by the fact that women tend to have relatively higher levels of education, but also the returns to their human capital is higher, especially at the public sector level. Results also indicate that the probability of working or nor is significant in the estimation of the salary equation. It suggests a possible selection bias, corrected at least partly.

Suggested Citation

  • Geniled Pabón Valiente & Josefa Ramoni Perazzi, 2007. "Wage differentials by gender in Venezuela (1997-1998): A two-step estimation approach," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 32(23), pages 45-61, january-j.
    • Handle: RePEc:ula:econom:v:32:y:2007:i:23:p:45-61
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    References listed on IDEAS

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    1. repec:pri:indrel:dsp016h440s473 is not listed on IDEAS
    2. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    3. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    4. Sharon P. Smith, 1974. "Government Wage Differentials by Region and Sex," Working Papers 438, Princeton University, Department of Economics, Industrial Relations Section..
    5. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, vol. 49(3), pages 795-798, May.
    6. Hoffnar, Emily & Greene, Michael, 1996. "Gender discrimination in the public and private sectors: A sample selectivity approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(1), pages 105-114.
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    More about this item

    Keywords

    Wage differentials by gender in Venezuela; selection bias; Heckman´s two step method.;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J8 - Labor and Demographic Economics - - Labor Standards
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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