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Gender-wage gap distribution with endogenous human capital: the Spanish case

In: Investigaciones de Economía de la Educación 6

Author

Listed:
  • Mario Rueda Narvaez

    (Universidad de Malaga)

  • Maria Lucia Navarro Gomez

    (Universidad de Malaga)

Abstract

This paper aims to verify the existence of gender-based wage discrimination in Spain and, if so, to quantify it. Using data from the Spanish section of the European Community Household Panel, we first estimate earnings equations for men and women using the instrumental variable method proposed by Hausman and Taylor (1981). This aims to avoid biases resulting from endogeneity of regressors with respect to the random perturbation in the model. Building on these results, we then follow the proposal of Jenkins (1994) and estimate a bivariate wage distribution for women, containing individual expected earnings when discrimination exists (applying the female wage structure) and when it doesn’t (applying the male wage structure). This allows for a full distributional analysis of gender-wage gaps. Our results show that discrimination is distributed unevenly across female workers and that the degree to which women are discriminated against grows as they move upward in the wage distribution.

Suggested Citation

  • Mario Rueda Narvaez & Maria Lucia Navarro Gomez, 2011. "Gender-wage gap distribution with endogenous human capital: the Spanish case," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 53, pages 869-881, Asociación de Economía de la Educación.
    • Handle: RePEc:aec:ieed06:06-53
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    References listed on IDEAS

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    1. Sara de la Rica & Arantza Ugidos, 1995. "¿Son las diferencias en capital humano determinantes en las diferencias salariales observadas entre hombres y mujeres?," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 395-414, September.
    2. Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 751-776, July.
    3. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
    4. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    5. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    6. Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
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    More about this item

    Keywords

    Human Capital; Wage Differentials; Insrumental Variables;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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