Abstract
Recently developed two-stage estimation methods of sample selection models are used, in the context of data from the 1989 Labor Market Activity Survey, to examine labor supply decisions and wage outcomes for employed men and women. Recent hypothesis test procedures are used to test for no sample selection and to test for a parametric against a semiparametric selection-correction procedure. We conclude that selection is indeed an issue for the sample at hand and that the semiparametric specification is appropriate. We also present the standard decomposition of the gender wage gap into its explained and unexplained portions.
| Original language | English |
|---|---|
| Pages (from-to) | 396-405 |
| Number of pages | 10 |
| Journal | Journal of Business and Economic Statistics |
| Volume | 21 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Jul 2003 |
Bibliographical note
Funding Information:is partly supported by the SSHRC of Canada, the PvtrEaeite-nrLweH.i(1s974,), “Comntsmon SecevitytlBiesieas prise Research Center,adtnheBusPhgrraoinEmcomniscof Journal of Poialcl Eicotnom, 82,y1145–1157. PublicPolic,TeyaxAs U&iventMyr.CsrsioihŽtdetsahksntehmtricRegreesFunsctinio”oJo,nrnaulofEconomtr,e8i7,1c45–s165.Li,Q.,andWa,nS.(19g98),“ASimpleConsisnttBoeotstrapTesfortaPraa- UniverysofiGtlphuw,eerheisAjnucdtPfrero.ssoLi, Q., and Wooldridge, J. (2002), “SemariatprmEstimatioicen of PlalLrin-ytia er Modaels for Dependent Data WitGhneread Rtgeer”eEconsometricsors,
Keywords
- Labor supply
- Selection
- Two-stage semiparametric estimation
- Wage outcomes
