Matching as a Tool to Decompose Wage Gaps
Abstract
This paper presents a methodology that uses matching comparisons to explain gender wage differences. The approach emphasizes gender differences in the supports of the distributions of observable characteristics and provides insights into the distribution of unexplained gender pay differences. This nonparametric alternative to the Blinder-Oaxaca (BO) decomposition does not require the estimation of earnings equations and divides the gap into four additive elements. Two of these are analogous to the elements of the BO decomposition (but computed only over the common support of the distributions of characteristics), while the other two account for differences in the supports.
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The Ñopo model allows generating a synthetic counterfactual of individuals by matching men and women with identical observable characteristics, without needing to assume any functional form in the relationship between explanatory variables and income.
“Esto permite generar un contrafactual sintético de individuos al parear hombres y mujeres con características observables idénticas, sin necesidad de suponer ninguna forma funcional en la relación entre variables explicativas e ingresos.”
From Changes in Peru's Gender Earning Gap: An Analysis from 1997 to 2021 (2023) · cites this paper as Ñopo (2008)
The Ñopo model restricts comparison only to differences between men and women with comparable characteristics (common support).
“El modelo de Ñopo restringe la comparación únicamente a las diferencias entre hombres y mujeres con características comparables (soporte común).”
From Changes in Peru's Gender Earning Gap: An Analysis from 1997 to 2021 (2023) · cites this paper as Ñopo (2008)
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Changes in Peru's Gender Earning Gap: An Analysis from 1997 to 2021
Chalup, M., Urquidi, M., & Serrate, L. (2023) · doi:10.18235/0005248 · Cited by 2 · see citing works
- Authors
- Ñopo, H.
- Affiliations
- Inter-American Development Bank (US)
- Corresponding author
- Ñopo, Hugo
- ORCID
- Ñopo, Hugo
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 2008-05
- Volume
- 90
- Issue
- 2
- Pages
- 290-299
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W2021582121
- Cited by
- 355
- References
- 0
- Citations by year
- 2026: 8 · 2025: 8 · 2024: 18 · 2023: 25 · 2022: 18 · 2021: 19 · 2020: 15 · 2019: 22 · 2018: 24 · 2017: 17 · 2016: 20 · 2015: 27 · 2014: 29 · 2013: 21 · 2012: 16
- FWCI
- 42.97
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Review of Economics and Statistics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Gender Studies › Labour Market and Migration
- Social Sciences › Gender Studies › Gender, Labor, and Family Dynamics
- Keywords
- gender pay gap, Oaxaca-Blinder decomposition, common support, wage differentials
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