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unconditional quantile regression

Tools of the Trade: Beyond mean decompositions (with an application to the gender wage gap in China)

Jed Friedman's picture

Suppose you were investigating the observed wage gap in urban China, where men are paid approximately 30% more than women. The first thing you would like to know is whether the higher wages paid to men are a result of the greater average years of schooling and years in the labor force that men have or whether, instead, men are paid more even after accounting for education and experience. If the latter situation is the case then the difference in wages may at least in part be due to labor market discrimination.