Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments

James Albrecht, Aico van Vuuren, Susan Vroman

Research output: Working paperProfessional

Abstract

In this paper, we use quantile regression decomposition methods to analyzethe gender gap between men and women who work full time in the Nether-lands. Because the fraction of women working full time in the Netherlands isquite low, sample selection is a serious issue. In addition to shedding light onthe sources of the gender gap in the Netherlands, we make two methodolog-ical contributions. First, we prove that the Machado-Mata quantile regres-sion decomposition procedure yields consistent and asymptotically normalestimates of the quantiles of the counterfactual distribution that it is de-signed to simulate. Second, we show how the technique can be extended toaccount for selection.We find that there is a positive selection of women into full-time workin the Netherlands, i.e., women who get the greatest return to working fulltime do work full time. We find that about two-thirds of this selection isdue to observables such as education and experience with the remainder dueto unobservables. Our decompositions show that the majority of the genderlog wage gap is due to differences between men and women in returns tolabor market characteristics rather than to differences in the characteristics.This is true across the wage distribution, particularly in the top half of thedistribution.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2004

Publication series

NameDiscussion paper TI
No.04-123/3

Fingerprint

Sample selection
Gender wage gap
The Netherlands
Decomposition
Gender gap
Quantile
Quantile regression
Education
Wage gap
Market characteristics
Wage distribution

Cite this

Albrecht, J., van Vuuren, A., & Vroman, S. (2004). Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments. (Discussion paper TI; No. 04-123/3). Amsterdam: Tinbergen Instituut.
Albrecht, James ; van Vuuren, Aico ; Vroman, Susan. / Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments. Amsterdam : Tinbergen Instituut, 2004. (Discussion paper TI; 04-123/3).
@techreport{79a9f8a55a0743218dd712e2182e436c,
title = "Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments",
abstract = "In this paper, we use quantile regression decomposition methods to analyzethe gender gap between men and women who work full time in the Nether-lands. Because the fraction of women working full time in the Netherlands isquite low, sample selection is a serious issue. In addition to shedding light onthe sources of the gender gap in the Netherlands, we make two methodolog-ical contributions. First, we prove that the Machado-Mata quantile regres-sion decomposition procedure yields consistent and asymptotically normalestimates of the quantiles of the counterfactual distribution that it is de-signed to simulate. Second, we show how the technique can be extended toaccount for selection.We find that there is a positive selection of women into full-time workin the Netherlands, i.e., women who get the greatest return to working fulltime do work full time. We find that about two-thirds of this selection isdue to observables such as education and experience with the remainder dueto unobservables. Our decompositions show that the majority of the genderlog wage gap is due to differences between men and women in returns tolabor market characteristics rather than to differences in the characteristics.This is true across the wage distribution, particularly in the top half of thedistribution.",
author = "James Albrecht and {van Vuuren}, Aico and Susan Vroman",
year = "2004",
language = "English",
series = "Discussion paper TI",
publisher = "Tinbergen Instituut",
number = "04-123/3",
type = "WorkingPaper",
institution = "Tinbergen Instituut",

}

Albrecht, J, van Vuuren, A & Vroman, S 2004 'Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments' Discussion paper TI, no. 04-123/3, Tinbergen Instituut, Amsterdam.

Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments. / Albrecht, James; van Vuuren, Aico; Vroman, Susan.

Amsterdam : Tinbergen Instituut, 2004. (Discussion paper TI; No. 04-123/3).

Research output: Working paperProfessional

TY - UNPB

T1 - Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments

AU - Albrecht, James

AU - van Vuuren, Aico

AU - Vroman, Susan

PY - 2004

Y1 - 2004

N2 - In this paper, we use quantile regression decomposition methods to analyzethe gender gap between men and women who work full time in the Nether-lands. Because the fraction of women working full time in the Netherlands isquite low, sample selection is a serious issue. In addition to shedding light onthe sources of the gender gap in the Netherlands, we make two methodolog-ical contributions. First, we prove that the Machado-Mata quantile regres-sion decomposition procedure yields consistent and asymptotically normalestimates of the quantiles of the counterfactual distribution that it is de-signed to simulate. Second, we show how the technique can be extended toaccount for selection.We find that there is a positive selection of women into full-time workin the Netherlands, i.e., women who get the greatest return to working fulltime do work full time. We find that about two-thirds of this selection isdue to observables such as education and experience with the remainder dueto unobservables. Our decompositions show that the majority of the genderlog wage gap is due to differences between men and women in returns tolabor market characteristics rather than to differences in the characteristics.This is true across the wage distribution, particularly in the top half of thedistribution.

AB - In this paper, we use quantile regression decomposition methods to analyzethe gender gap between men and women who work full time in the Nether-lands. Because the fraction of women working full time in the Netherlands isquite low, sample selection is a serious issue. In addition to shedding light onthe sources of the gender gap in the Netherlands, we make two methodolog-ical contributions. First, we prove that the Machado-Mata quantile regres-sion decomposition procedure yields consistent and asymptotically normalestimates of the quantiles of the counterfactual distribution that it is de-signed to simulate. Second, we show how the technique can be extended toaccount for selection.We find that there is a positive selection of women into full-time workin the Netherlands, i.e., women who get the greatest return to working fulltime do work full time. We find that about two-thirds of this selection isdue to observables such as education and experience with the remainder dueto unobservables. Our decompositions show that the majority of the genderlog wage gap is due to differences between men and women in returns tolabor market characteristics rather than to differences in the characteristics.This is true across the wage distribution, particularly in the top half of thedistribution.

M3 - Working paper

T3 - Discussion paper TI

BT - Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments

PB - Tinbergen Instituut

CY - Amsterdam

ER -

Albrecht J, van Vuuren A, Vroman S. Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments. Amsterdam: Tinbergen Instituut. 2004. (Discussion paper TI; 04-123/3).