You are not logged in.

The gender wage gap and the role of reservation wages: new evidence for unemployed workers

Caliendo, Marco, Lee, Wang-Sheng and Mahlstedt, Robert 2017, The gender wage gap and the role of reservation wages: new evidence for unemployed workers, Journal of economic behavior & organization, vol. 136, pp. 161-173, doi: 10.1016/j.jebo.2017.02.011.

Attached Files
Name Description MIMEType Size Downloads

Title The gender wage gap and the role of reservation wages: new evidence for unemployed workers
Author(s) Caliendo, Marco
Lee, Wang-ShengORCID iD for Lee, Wang-Sheng orcid.org/0000-0001-5614-0465
Mahlstedt, Robert
Journal name Journal of economic behavior & organization
Volume number 136
Start page 161
End page 173
Total pages 13
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2017-04
ISSN 0167-2681
Keyword(s) wages
gender gap
reservation wages
decomposition
discrimination
Summary This paper examines the importance of differences in reservation wages for the gender wage gap. Based on two waves of rich survey data for a sample of newly unemployed individuals in Germany, we perform a decomposition analysis including measures for reservation wages, detailed information on education, socio-demographics, labor market history, as well as personality traits. In order to address the potential endogeneity of reservation wages we exploit a generated instrumental variable strategy that relies on heteroscedasticity of the error terms. Our findings indicate that the gender wage gap becomes small and statistically insignificant once we control for reservation wages. Moreover, we perform a subgroup analysis that provides valuable insights about the importance of potentially unobserved characteristics that affect reservation wages and realized wages simultaneously. Reasons for differences in reservation wages could arise from productivity differences, the fact that women anticipate discrimination and different unobserved traits or preferences.
Language eng
DOI 10.1016/j.jebo.2017.02.011
Field of Research 1402 Applied Economics
Socio Economic Objective 0 Not Applicable
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2017, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30091955

Document type: Journal Article
Collection: Department of Economics
Connect to link resolver
 
Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved.

Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in TR Web of Science
Scopus Citation Count Cited 0 times in Scopus
Google Scholar Search Google Scholar
Access Statistics: 33 Abstract Views, 0 File Downloads  -  Detailed Statistics
Created: Tue, 14 Mar 2017, 08:34:49 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.