Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73107
Authors: 
Schwiebert, Jörg
Year of Publication: 
2012
Series/Report no.: 
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät, Universität Hannover 502
Abstract: 
In this paper, we revisit the Mulligan and Rubinstein (2008: Selection, investment and women's relative wages over time. The Quarterly Journal of Economics, 123(3):1061-1110) analysis about the composition of the female workforce in the United States. Using a Heckman selection model, these authors found that the selection of women into the female workforce changed from negative to positive over time. However, the authors assumed the exogeneity of covariates, which is sometimes appropriate but not for a variable like education. We revisit the issue of the Mulligan and Rubinstein (2008) paper by developing and applying a Heckman selection model which also controls for the potential endogeneity of education. Applying this estimator to U.S. Census and American Community Survey data, we find that selection has become more positive over time (like in Mulligan and Rubinstein), but that selection has never been negative. We rather find an interesting puzzle concerning the correlation pattern of the unobservables in our model which requires further investigation.
Subjects: 
Sample selection model
endogenous covariates
gender wage gap
composition of the female workforce
female labor force participation
JEL: 
C21
C24
C26
J21
J31
Document Type: 
Working Paper

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