Inter-industry wage differentials and the gender wage gap: An identification problem

William C. Horrace, Ronald L. Oaxaca

Research output: Contribution to journalArticle

38 Scopus citations

Abstract

An intuitively appealing method for estimating gender wage gaps by industry is shown to yield estimates that vary according to the arbitrary choice of left-out reference groups for non-industry categorical variables, such as race and marital status. This study uses data from the Current Population Surveys to explore alternative methods for estimating gender wage gaps by industry that are not susceptible to the identification problem. Statistical significance measures reveal when relative industry wage gap rankings are not statistically meaningful. The methodology readily extends to other contexts such as racial, union-nonunion, or immigrant-native wage gaps by industry, occupational, or regional groupings.

Original languageEnglish (US)
Pages (from-to)611-618
Number of pages8
JournalIndustrial and Labor Relations Review
Volume54
Issue number3
DOIs
StatePublished - Apr 2001
Externally publishedYes

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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