Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches
Author: Dacuycuy, Lawrence
Source: Applied Economics, Volume 38, Number 21, 10 December 2006 , pp. 2497-2511(15)
The study examines the roles of experience and education in explaining the increase in wage inequality among Philippine male workers between 1988 and 1995. It also provides a methodological approach to the analysis of wage inequality by combining non-parametric methods with semiparametric additive models, using the variance accounting framework. Non-parametric density estimators allow flexibility in dealing with distributional inference while additive models yield marginal effects estimates under minimal assumptions on the functional specification of the wageâ–“schooling and wageâ–“experience relationships. The results show that much of the inequality increase from 1988 to 1995 was caused by greater variabilities in returns to schooling and experience among 1995 workers. The rise of the p90/p10 percentile ratio was caused by greater return variabilities on schooling and experience in the 90th percentile.
Document Type: Research Article
Affiliations: Graduate School of Economics, Kyoto University, Japan
Publication date: 10 December 2006