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The convergence of the gender pay gap: An alternative estimation approach. (2017). Castagnetti, Carolina ; Topfer, Marina ; Rosti, Luisa.
In: Hohenheim Discussion Papers in Business, Economics and Social Sciences.
RePEc:zbw:hohdps:142017.

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  8. Appendix The robustness of the decompostion is for simplicity shown for the case of the GPG. Deriving the robust model based on the GPG allows also for a better comparison of the method with the approaches in the literature (e.g. Fortin, 2008, uses the case of the GPG).18 In Appendix C, when considering differences of gaps, we derive the model for the GPG changing over time. Notably, the methods can be applied to various other decomposition problems.
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  18. D Intercept-Shift Approach versus Pooled-Sample Approach Lee (2015) shows that the intercept-shift approach proposed by Fortin (2008) presents two drawbacks. Firstly, the reference parameter for the Oaxaca-Blinder decomposition, i.e. the parameter that would prevail in a ‘fair’ world under no discrimination, relies on the variance difference among categories. Secondly, the reference intercept is arbitrary: the same OaxacaBlinder decomposition holds with vastly different reference intercepts.
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  21. Fortin, N. (2008). The Gender Wage Gap among Young Adults in the United States: The Importance of Money versus People. Journal of Human Resources, 43 (4).

  22. Gardeazabal, J. and Ugidos, A. (2004). More on Identification in Detailed Wage Decompositions.

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