Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162357
Authors: 
Firpo, Sergio Pinheiro
Year of Publication: 
2017
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2017 [Issue:] 347
Abstract: 
Differences in wages between men and women, white and black workers, or any two distinct groups are a controversial feature of the labor market, raising concern about discrimination by employers. Decomposition methods shed light on those differences by separating them into: (i) composition effects, which are explained by differences in the distribution of observable variables, e.g. education level; and (ii) structural effects, which are explained by differences in the returns to observable and unobservable variables. Often, a significant structural effect, such as different returns to education, can be indicative of discrimination.
Subjects: 
decomposition methods
Oaxaca-Blinder Decomposition
quantile decomposition
wage gap
JEL: 
C01
J00
Persistent Identifier of the first edition: 
Document Type: 
Article

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