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Gender Wage Gaps And Gender Inequality

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According to Boris Hirsch and associates, gender wage gaps should vary among densely populated regions and less densely populated regions. Using an estimating Mincerian earnings function that controls for individual characteristics and reflecting the productivity of the worker, we are able to get the ceteris paribus of the gender pay gap that will not be able to be explained by any differences in the productivity of workers. They also used the approach developed by Oaxaca and Blinder which estimated two separate earnings functions- one for men and one for women. They then decompose the gender pay gap into two parts- an explained part due to different endowments in workers characteristics and an unexplained part. This is known as the Oaxaca-Blinder decomposition (Hirsch et. al., 2009). In this study, the explained portion compares the earnings of men and women with identical observable characteristics. The unexplained part is derived by taking the mean over the log gender wage difference of the matched female-male observations and is comparable to the unexplained part of the gender pay gap that has been derived from a Oaxaca-Blinder decomposition that has been based on female characteristics and evaluated at the male coefficients. Essentially, the unexplained gender pay gap is the difference in the expected earnings of female and male workers with identical observable characteristics and is associated with discrimination (Hirsch et. al., 2009). Data for this study were

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