Gender Wage Differentials

Changes in gender wage differentials over time has long been an important welfare issue. In most studies, gender wage differentials are examined using cross-sectional analysis. This paper raises the issue that the cross-sectional returns to experience could be biased by cohort effects. The comparison of the decomposition results on gender wage differentials over time based on cross-sectional wage equations could generate very misleading policy implications. Using a pseudo-panel dataset constructed from stacked cross-sections, the empirical results provide evidence to support the theoretical issues raised in this paper.

The Melbourne Institute contact for this project is Dr Yi Ping Tseng

Faculty Grant 2000