Occupational endogeneity and gender wage differentials for young workers: An empirical analysis using Irish data

Abstract

This paper presents estimates of the unexplained gender wage gap for young workers controlling for occupational endogeneity. Two contrasting econometric techniques are employed to control for occupational endogeneity. One is the Heckman two step procedure while the other is an IV estimator based on the work of Duncan and Leigh (1985). Statistical tests for the endogeneity hypothesis are provided for both estimators and mildly conflicting results are obtained.