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Estimation of Mincer-type wage function and analysis of wage gap with Blinder-Oaxaca decomposition

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  • YOSHIOKA Shinji

Abstract

This study estimates the Mincer-type wage function, indicated by Mincer (1974), with attention to some points according to Kawaguchi (2011), utilizing individual data of Basic Survey on Wage Structure. Moreover, to focus on the wage gap, this paper estimates Kernel density functions and employs Blinder-Oaxaca decomposition, developed by Oaxaca (1973)、Blinder (1973)、Oaxaca and Ransom (1994), to attempt to decompose attributional and non-attributional wage gaps, including industrial gaps, regional gaps, firm-size gaps, other than gender gap based on individual data. According to the results, the proportion of attributional gap over full gap is not always dominant, which suggests that one of the causes is the absence of demand factors in the Mincer-type wage function.

Suggested Citation

  • YOSHIOKA Shinji, 2015. "Estimation of Mincer-type wage function and analysis of wage gap with Blinder-Oaxaca decomposition," ESRI Discussion paper series 320, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esj:esridp:320
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    Keywords

    Mincer-type wage function; Blinder-Oaxaca decomposition; Wage gap; Basic Survey on Wage Structure; Individual data analysis JEL Classification: J31; J71;
    All these keywords.

    JEL classification:

    • 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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