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A nonparametric decomposition of the Mexican American average wage gap
Author(s) -
Mora Ricardo
Publication year - 2008
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.1006
Subject(s) - wage , nonparametric statistics , flexibility (engineering) , decomposition , sample (material) , econometrics , selection (genetic algorithm) , economics , mathematics , computer science , statistics , labour economics , artificial intelligence , ecology , chemistry , chromatography , biology
This paper shows that average wage gap decompositions between any two groups of workers can be carried out using nonparametric wage structures. It also proposes an algorithm to correct for sample selection in nonparametric models known as tree structures. This paper studies the wage gap between third‐generation Mexican American and non‐Hispanic white workers in the southwest. It is shown that the decomposition heavily depends on functional assumptions, and that different aproaches to flexibility may render sufficiently good and similar results Copyright © 2008 John Wiley & Sons, Ltd.