Using normalized equations to solve the indetermination problem in the Oaxaca-Blinder decomposition: an application to the gender wage gap in Brazil

Abstract

There are hundreds of works that implement the Oaxaca-Blinder decomposition. However, this decomposition is not invariant to the choice of reference group when dummy variables are used. This paper applies the solution proposed by Yun (005a,b) for this identification problem to Brazilian gender wage gap estimation. Our principal finding is the increasing difference in part-time work coefficients between men and women, which contributes to narrow the gender wage gap. Other studies in Brazil not using any correction of the identification problem have found different results.<br>Há centenas de trabalhos que implementam a decomposição de Oaxaca-Blinder. Entretanto, esta decomposição não é invariante à escolha dos grupos de referência quando variáveis binárias são utilizadas como regressores. Este artigo aplica a solução proposta por Yun (005a,b) para este problema de identificação à estimação do diferencial de salários por sexo no Brasil. A crescente diferença entre homens e mulheres no coeficiente da regressão associado ao trabalho em meio período vem contribuindo para reduzir o diferencial de salários por sexo. Outros estudos já realizados no Brasil que não utilizaram qualquer correção do problema de identificação, encontraram resultados diferentes

Occupational segregation and the gender wage gap in Brazil: an empirical analysis

“…Future research on this area should consider investigating more deeply the affect of occupation choice on the gender wage gap. For instance, Scorzafave & Pazello (2007) demonstrated the impact of several variables on the wage gap, but also did not focus on occupation choice. Analyzing of the impact of occupational choice on the gender wage gap is a promising way to understand the evolution of the female labor market.…”

“…Our analyses target the average differences in labor market earnings for men and women for the period between 1978 and 2007. Finally, Scorzafave & Pazello (2007) also studied the gender wage gap in Brazil, however their goal was to apply normalized equations to solve the indetermination problem of the Oaxaca-Blinder decomposition approach. We use their methodology in our research to better understand the impact of the occupation transition process on narrowing the gender wage gap during this period.…”

The impact of civil status on womencs wages in Brazil

“…On the basis of the method used by Scorzafave and Pazello (2007), among the observable variables analyzed for the two sub-samples, women's occupations and educational levels have the greatest impacts on wage differences. For women working full time in the two sub-samples, educational level has a greater impact on wage differences.…”

Regional Differences in the Gender Earnings Gap in Brazil: Development, Discrimination, and Inequality

“…Furthermore, Madalozzo and Martins (), Scorzafave and Pazello (), Madalozzo (), and Madalozzo and Mauriz () investigate the evolution of the gender gap and identify its determinants, while Lovell () and Lima et al () analyze regional differences in the gender gap and associated factors.…”