Gender wage gap: Why the discrimination theory (likely) fails
menghu.substack.com
Probably the most rehearsed explanation of the gender pay gap is discrimination. After accounting for traditional labor market factors, a large residual gap remains. This residual gap is also called the unexplained gap. Researchers often commit the fallacy of equating unexplained effect to discrimination effect instead of omitted variable bias. In fact, most wage decomposition models are probably contaminated by bias. This article will explain that much of the residual gap is likely due to other causes. In particular, time flexibility. The evidence for the discrimination effect is often ambiguous.
Gender wage gap: Why the discrimination theory (likely) fails
Gender wage gap: Why the discrimination…
Gender wage gap: Why the discrimination theory (likely) fails
Probably the most rehearsed explanation of the gender pay gap is discrimination. After accounting for traditional labor market factors, a large residual gap remains. This residual gap is also called the unexplained gap. Researchers often commit the fallacy of equating unexplained effect to discrimination effect instead of omitted variable bias. In fact, most wage decomposition models are probably contaminated by bias. This article will explain that much of the residual gap is likely due to other causes. In particular, time flexibility. The evidence for the discrimination effect is often ambiguous.