Jamie Fogel, Bernardo Modenesi
arXiv 7 May 2024 · Econometrics
arXiv:2405.04365 · PDF · DOI · OpenAlex · Extracted main text
Recent advances in the literature of decomposition methods in economics have allowed for the identification and estimation of detailed wage gap decompositions. In this context, building reliable counterfactuals requires using tighter controls to ensure that similar workers are correctly identified by making sure that important unobserved variables such as skills are controlled for, as well as comparing only workers with similar observable characteristics. This paper contributes to the wage decomposition literature in two main ways: (i) developing an economic principled network based approach to control for unobserved worker skills heterogeneity in the presence of potential discrimination; and (ii) extending existing generic decomposition tools to accommodate for potential lack of overlapping supports in covariates between groups being compared, which is likely to be the norm in more detailed decompositions. We illustrate the methodology by decomposing the gender wage gap in Brazil.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Fogel and Modenesi (2023) What is a Labor Market? Classifying Workers and Jobs Using Network Theory | 1.000 | 8 | 3 | 100% |
| 2 | Blinder (1973) Wage Discrimination: Reduced Form and Structural Estimates | 0.843 | 3 | 3 | 100% |
| 3 | Fortin, Lemieux and Firpo (2011) Chapter 1 - Decomposition Methods in Economics | 0.843 | 3 | 3 | 100% |
| 4 | Oaxaca (1973) Male-Female Wage Differentials in Urban Labor Markets | 0.843 | 3 | 3 | 100% |
| 5 | Modenesi (2022) Advancing Distribution Decomposition Methods Beyond Common Supports: Applications to Racial Wealth Disparities self | 0.811 | 4 | 2 | 100% |
| 6 | Ñopo (2008) Matching as a Tool to Decompose Wage Gaps | 0.811 | 4 | 2 | 100% |
| 7 | Lindenlaub (2017) Sorting multidimensional types: Theory and application | 0.737 | 3 | 2 | 100% |
| 8 | Tan (2018) Multidimensional heterogeneity and matching in a frictional labor market - An application to polarization | 0.737 | 3 | 2 | 100% |
| 9 | DiNardo, Fortin and Lemieux (1996) Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach | 0.737 | 3 | 2 | 100% |
| 10 | Peixoto (2018) Nonparametric weighted stochastic block models | 0.737 | 3 | 2 | 100% |
Showing the top 10 of 35 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Advancing Distribution Decomposition Methods Beyond Common Supports: Applications to Racial Wealth Disparities | 0.644 | 2 | 2 |