A Primer on Wage Gap Decompositions in the Analysis of Labor Market Discrimination

Author(s):  
Yana van der Meulen Rodgers
2021 ◽  
Vol 1 (1) ◽  
pp. 1-17
Author(s):  
Fulden KÖMÜRYAKAN ◽  
Metehan YILGÖR

The principal objective of this study is to determine the variation in the gender wage gap in the last decade of the Turkish labor market and reveal possible factors that drive the wage disparities. Therefore, the data set covers the Household Budget Statistics surveys 2009 and 2018. In order to prevent biased results, the empirical strategy contains the two-stage model estimation and selectivity corrected decomposition approach. The findings claim a widening gender wage gap in a decade. The portion of the gender wage gap resulting from the labor market discrimination tends to increase whereas the wage gap based on the gender differences in characteristics decreases. Despite the decrease, if the female employees had the same characteristics as males, their mean wages would be higher. Moreover, the gender wage gap attributable to gender discrimination in the labor market continues to increase.


1998 ◽  
Vol 12 (2) ◽  
pp. 101-116 ◽  
Author(s):  
James J Heckman

The evidence on discrimination produced from the audit method is examined. Audits survey the average firm and not the marginal firm which determines the level of market discrimination. Taken on its own terms, there is little evidence of labor market discrimination from audit methods. The validity of audit methods is critically dependent on unverified assumptions about equality across race/gender groups of the distributions of unobserved (by audit designers) productivity components acted on by firms and about the way labor markets work. Audits can find discrimination when none exists and can disguise it when it does.


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