Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/147843 
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers No. 10157
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper analyzes wage decomposition methodology in the context of panel data sample selection embedded in a correlated random effects setting. Identification issues unique to panel data are examined for their implications for wage decompositions. As an empirical example, we apply our methodology to German Socio-Economic Panel (GSOEP) data with which we investigate gender wage differentials in the German Labor Market. Our results highlight the sensitivity of inferences about potential discrimination to how elements of the panel data selection model are assigned to explained and unexplained components.
Subjects: 
decomposition
panel data
GSOEP
sample selection
JEL: 
J31
J71
C00
Document Type: 
Working Paper

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