Occupational segregation and selectivity bias in occupational wage equations: an empirical analysis using Irish data

Abstract

The gender wage effects of occupational segregation are assessed within the framework of occupational attachment and wage equations. This paper exploits the modified ‘index number’ approach suggested by Brown et al.(1980) and used recently by Miller (1987). However, neither of these papers allowed for the potential effects of selectivity bias in occupational wage equations. In this study selectivity bias is corrected for using the method outlined in Lee (1983). This allows for the effects of occupational selectivity buas on the gender wage gap to be assessed. The findings for this sample of young lrish workers suggest that the greater part of the female wage disadvantage lies in intraoccupational wage differences. Furthermore selectivity bias is found to be important for a number of occupational categories.