Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method  

Oleh:

ChangHwan Kim

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Sociological Methods & Research (SMR) vol. 38 no. 04 (May 2010), page 619-651.
Topik: Blinder-Oaxaca Decomposition; Identification Problem; Detailed Decomposition; Decomposition of Change Over Time
Fulltext: Sociological Methods and Research 2010; 38; 4; 619.pdf (209.54KB)

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Perpustakaan PKPM Nomor Panggil: S28 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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This article extends the Blinder-Oaxaca decomposition method to the decomposition of change in the wage gap between white and black men over time. The previously implemented technique, in which the contributions of two decomposition components are estimeted by subtracting those at time 0 from the corresponding ones at time I, can yield an untenable conclusion about the extent to which the contributions of the coefficient and endowment effects account for changes in the wage gap between white and black men over time. This article presents a modified version of Smith and Welch's (1989) decomposition method through which the sorces of the change over time are decomposed into five components. The extents to which the education, age, region, metro residence, and marital status variables contribute to the rising racial wage gap between white and black men from 1980 to 2005 are estimated using the five-component detailed decomposition method and are contrased with the results of the old simple subtraction decomposition technique. In conclusion, this article shows that changes in the racial wage gap between 1980 to 2005 result from many contradicting forces and cannot be reduced to one explanation.

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