Sources of Bias in Women&Apos;S Wage Equations: Results Using Sibling Data

41 Pages Posted: 18 Apr 2007 Last revised: 27 Jun 2021

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Sanders Korenman

City University of New York (CUNY) - School of Public Affairs; National Bureau of Economic Research (NBER)

Date Written: March 1992

Abstract

We use data on sisters to jointly address heterogeneity bias and endogeneity bias in estimates of wage equations for women. This analysis yields evidence of biases in OLS estimates of wage equations for white and black women, some of which are detected only when these two sources of bias are addressed simultaneously. For both white and black women there is evidence of upward bias in the estimated returns to schooling. Bias-corrected estimates of the effect of marriage on wages, for white women, suggest a positive marriage premium. We also use the sibling data to identify our models, and test a number of other commonly used identifying assumptions as overidentifying restrictions.

Suggested Citation

Neumark, David and Korenman, Sanders, Sources of Bias in Women&Apos;S Wage Equations: Results Using Sibling Data (March 1992). NBER Working Paper No. w4019, Available at SSRN: https://ssrn.com/abstract=980919

David Neumark (Contact Author)

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National Bureau of Economic Research (NBER)

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Sanders Korenman

City University of New York (CUNY) - School of Public Affairs ( email )

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National Bureau of Economic Research (NBER)

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United States

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