Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap: Counterfactual quantile decompositions with selection correction
Biewen M, Fitzenberger B, Seckler M (2020)
Publication Type: Journal article
Publication year: 2020
Journal
Book Volume: 67
Article Number: 101927
DOI: 10.1016/j.labeco.2020.101927
Abstract
Albrecht et al. (2009) use the approach of Buchinsky (1998; 2001) to estimate selection corrected quantile regressions for the estimation of counterfactual wage distributions. Huber and Melly (2015) point to the fact that the Buchinsky approach requires a conditional independence assumption that may be violated in applications and suggest a test for this. This paper proposes to transform the original quantile regression model in order to ensure the conditional independence assumption to hold when it is rejected for the original model. Our empirical results on the gender wage gap for Germany suggest that unobserved selection may be underestimated if no transformation is applied.
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Germany (DE)How to cite
APA:
Biewen, M., Fitzenberger, B., & Seckler, M. (2020). Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap: Counterfactual quantile decompositions with selection correction. Labour Economics, 67. https://dx.doi.org/10.1016/j.labeco.2020.101927
MLA:
Biewen, Martin, Bernd Fitzenberger, and Matthias Seckler. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap: Counterfactual quantile decompositions with selection correction." Labour Economics 67 (2020).
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