March 2013

IZA DP No. 7315: Population Average Gender Effects

substantially revised version forthcoming as "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes" in: Industrial and Labor Relations Review

In this paper I develop a consistent estimator of the population average treatment effect (PATE) which is based on a nonstandard version of the Oaxaca–Blinder decomposition. As a result, I extend the recent literature which has utilized the treatment effects framework to reinterpret this technique, and propose an alternative solution to its fundamental problem of comparison group choice. I also use the Oaxaca–Blinder decomposition and its semiparametric extension to decompose gender wage differentials with the UK Labour Force Survey (LFS) data, while providing separate estimates of the average gender effect on men, women, and the whole population.