This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. May 2011
  5. Applying Fixed Effects to Hierarchical Segregation Models

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Applying Fixed Effects to Hierarchical Segregation Models

  • Dina Shatnawi
  • Ronald Oaxaca
  • Michael Ransom
American Economic Review
vol. 101, no. 3, May 2011
(pp. 588–92)
Download Full Text PDF

Abstract

This paper expands the empirical implementation of hierarchical segregation models to allow for the use of panel methods. We use firm level data collected between 1977 and 1985 from a regional grocery store that faced a title VII class-action lawsuit over gender discrimination much the same as Wal-Mart and Costco. Special problems arise in implementing decompositions in a fixed effects and random effects setting, especially when analyzing wage-level differences. We develop a variation of wage decompositions that takes into consideration an unbalanced design and extends the literature by explicitly formalizing the inclusion of the unobserved heterogeneous effects.

Citation

Shatnawi, Dina, Ronald Oaxaca, and Michael Ransom. 2011. "Applying Fixed Effects to Hierarchical Segregation Models." American Economic Review 101 (3): 588–92. DOI: 10.1257/aer.101.3.588

JEL Classification

  • J16 Economics of Gender; Non-labor Discrimination
  • J31 Wage Level and Structure; Wage Differentials
  • J71 Labor Discrimination
  • J81 Labor Standards: Working Conditions