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Article: Decomposing wage residuals: Unmeasured skill or statistical artifact?

TitleDecomposing wage residuals: Unmeasured skill or statistical artifact?
Authors
KeywordsBusiness and economics
Labor and industrial relations
Issue Date1997
PublisherUniversity of Chicago Press. The Journal's web site is located at http://www.journals.uchicago.edu/JOLE
Citation
Journal Of Labor Economics, 1997, v. 15 n. 3, p. 555-566 How to Cite?
AbstractThe decomposition of wage residuals into standard deviation and percentile ranks can be misleading because the two measures are not necessarily independent. With rising wage inequality, the mean percentile rank of low-wage groups will rise simply because more dispersed distributions have thicker tails. This interpretation is consistent with the observed stability of gender and racial wage gaps. In contrast, the unmeasured skill interpretation of wage residuals would predict widening wage gaps in the face of rising wage inequality, unless one posits an increase in the level of unobserved skill for women and blacks.
Persistent Identifierhttp://hdl.handle.net/10722/42277
ISSN
2015 Impact Factor: 3.214
2015 SCImago Journal Rankings: 5.631
References

 

DC FieldValueLanguage
dc.contributor.authorSuen, Wen_HK
dc.date.accessioned2007-01-08T02:33:22Z-
dc.date.available2007-01-08T02:33:22Z-
dc.date.issued1997en_HK
dc.identifier.citationJournal Of Labor Economics, 1997, v. 15 n. 3, p. 555-566en_HK
dc.identifier.issn0734-306Xen_HK
dc.identifier.urihttp://hdl.handle.net/10722/42277-
dc.description.abstractThe decomposition of wage residuals into standard deviation and percentile ranks can be misleading because the two measures are not necessarily independent. With rising wage inequality, the mean percentile rank of low-wage groups will rise simply because more dispersed distributions have thicker tails. This interpretation is consistent with the observed stability of gender and racial wage gaps. In contrast, the unmeasured skill interpretation of wage residuals would predict widening wage gaps in the face of rising wage inequality, unless one posits an increase in the level of unobserved skill for women and blacks.en_HK
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dc.format.extent25600 bytes-
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dc.languageengen_HK
dc.publisherUniversity of Chicago Press. The Journal's web site is located at http://www.journals.uchicago.edu/JOLEen_HK
dc.relation.ispartofJournal of Labor Economicsen_HK
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.rightsJournal of Labor Economics. Copyright © University of Chicago Press.en_HK
dc.subjectBusiness and economicsen_HK
dc.subjectLabor and industrial relationsen_HK
dc.titleDecomposing wage residuals: Unmeasured skill or statistical artifact?en_HK
dc.typeArticleen_HK
dc.identifier.openurlhttp://library.hku.hk:4550/resserv?sid=HKU:IR&issn=0734-306X&volume=15&issue=3&spage=555&epage=566&date=1997&atitle=Decomposing+wage+residuals:+Unmeasured+skill+or+statistical+artifact?en_HK
dc.identifier.emailSuen, W: hrneswc@hkucc.hku.hken_HK
dc.identifier.authoritySuen, W=rp00066en_HK
dc.description.naturepublished_or_final_versionen_HK
dc.identifier.scopuseid_2-s2.0-0039768965en_HK
dc.identifier.hkuros26548-
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-0039768965&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume15en_HK
dc.identifier.issue3en_HK
dc.identifier.spage555en_HK
dc.identifier.epage566en_HK
dc.publisher.placeUnited Statesen_HK
dc.identifier.scopusauthoridSuen, W=7006977946en_HK

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