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Quantile Selection in the Gender Pay Gap

Egshiglen Batbayar, Christoph Breunig, Peter Haan, Boryana Ilieva

arXiv 20 Nov 2025 · Econometrics

arXiv:2511.16187 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a new approach to estimate selection-corrected quantiles of the gender wage gap. Our method employs instrumental variables that explain variation in the latent variable but, conditional on the latent process, do not directly affect selection. We provide semiparametric identification of the quantile parameters without imposing parametric restrictions on the selection probability, derive the asymptotic distribution of the proposed estimator based on constrained selection probability weighting, and demonstrate how the approach applies to the Roy model of labor supply. Using German administrative data, we analyze the distribution of the gender gap in full-time earnings. We find pronounced positive selection among women at the lower end, especially those with less education, which widens the gender gap in this segment, and strong positive selection among highly educated men at the top, which narrows the gender wage gap at upper quantiles.

Citation extraction

48
references
90
in-text mentions
48
distinct cited
4
self-citations
11,599
main-text words

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Most heavily cited references

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.

ReferenceIntensityMentionsSectionsMain text
1Francine D. Blau and Lawrence M. Kahn and Nikolai Boboshko and Matth… The Impact of Selection into the Labor Force on the Gender Wage Gap1.00073100%
2Arellano, Manuel and Bonhomme, Stéphane (2017) Quantile Selection Models with an Application to Understanding Changes in Wage Inequality1.00053100%
3Philip Oreopoulos and Till von Wachter and Andrew Heisz (2012) The Short- and Long-Term Career Effects of Graduating in a Recession0.92843100%
4Heckman, James (1979) Sample selection bias as a specification error0.84333100%
5Yu, Aiai and Zhong, Yujie and Feng, Xingdong and Wei, Ying (2023) Quantile Regression for Nonignorable Missing Data with Its Application of Analyzing Electronic Medical Records0.7374350%
6Koenker, Roger and Bassett, Gilbert (1978) Regression Quantiles0.7373367%
7D'Haultfoeuille, Xavier (2010) A new instrumental method for dealing with endogenous selection0.73732100%
8Mulligan, Casey B and Rubinstein, Yona (2008) Selection, investment, and women's relative wages over time0.73732100%
9Dauth, Wolfgang and Eppelsheimer, Johann (2020) Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis: A guide0.6443267%
10Devereux, Paul J (2002) The Importance of Obtaining a High-Paying Job0.64422100%

Showing the top 10 of 48 scored citations.