NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sources of Bias in Women's Wage Equations: Results Using Sibling Data

David Neumark, Sanders Korenman

NBER Working Paper No. 4019
Issued in March 1992
NBER Program(s):   LS

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.

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Document Object Identifier (DOI): 10.3386/w4019

Published: Journal of Human Resources, Spring 1994, Volume 39 (2): 379-405. citation courtesy of

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