An Application of Blinder-Oaxaca Decomposition in Explaining Gender Difference of Earnings in Tehran

Document Type : Research Paper

Author

Assistant Professor Faculty of Economics University of Tehran

Abstract

Income inequality is sometimes appeared as the gap between two gender groups. Adequate observations relevant to this type of income inequality have tempted economists to find the causes of this phenomenon and measure its width. The isolation of discrimination from that part of income gap which is explained by productivity of men and women is on the focus. Identifying the portion of discrimination (unexplained) and explained earning gender gap by using Blinder-Oaxaca decomposition procedure on the basis of two samples in Tehran is the main goal of this paper. The data have been gathered by questionnaire in 2012. Findings suggest that approximately 41% of the earning gap of sexes is attributed to the difference in human capital and another 59% is related to discrimination. Additionally, work experience is the dominant cause of gender earning gap.
JEL Classification: I24, J16, J71

Keywords

References

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Journal of Economic Research (Tahghighat- E- Eghtesadi)
Volume 52, Issue 3 - Serial Number 120
October 2017
Pages 735-761

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History

  • Receive Date: 22 October 2016
  • Revise Date: 13 May 2017
  • Accept Date: 23 May 2017

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