Bootstrapping statistical inferences of decomposition methods for gender earnings differentials
Document Type
Journal article
Source Publication
Applied Economics
Publication Date
1-1-2008
Volume
40
Issue
12
First Page
1583
Last Page
1593
Abstract
Applying the standard bootstrapping technique with corrections for heteroskedasticity for a sample of the 1997 Urban Household Survey in China, the present article attempts to test (1) whether the commonly used decomposition methods for gender earnings differentials give significantly different results and (2) whether the explained component is significantly different from the unexplained component (which is commonly referred to as discrimination) within each decomposition method. Based on a national data set, the empirical results indicated some significant differences in both tests. The implication of the results is that the proposed bootstrapping technique can be regarded as a guideline on applying which approach to decompose gender earnings differentials among different methods without losing important information, and on evaluating the relative importance of the decomposition components for any chosen method.
DOI
10.1080/00036840600843970
Print ISSN
00036846
Funding Information
This research was supported in part by a Competitive Earmarked Research Grant (No. LU3110/03H) from the RGC of Hong Kong SAR Government and the Faculty Research Grant of the Kong Baptist University (FRG/02-03/I-37). {LU3110/03H, FRG/02-03/I-37}
Publisher Statement
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Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Ma, Y., & Ng, Y. C. (2008). Bootstrapping statistical inferences of decomposition methods for gender earnings differentials. Applied Economics, 40(12), 1583-1593. doi: 10.1080/00036840600843970