In a Oaxaca decomposition, the "unexplained" portion of the wage gap is typically thought to Overstate the true extent of if there are no skill differences between discrimination unobservable the groups. Overstate the true extent of discrimination if discrimination leads to observable skill differences between the groups.

In a Oaxaca decomposition, the "unexplained" portion of the wage gap is typically thought to Overstate the true extent of if there are no skill differences between discrimination unobservable the groups. Overstate the true extent of discrimination if discrimination leads to observable skill differences between the groups.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section19.2: The Economics Of Discrimination

Problem 2QQ

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