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Australian age, period, cohort effects in the gender wage gap - 2001 to 2018

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Kamal, M and Blacklow, P ORCID: 0000-0002-4177-7567 2021 , Australian age, period, cohort effects in the gender wage gap - 2001 to 2018.

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Abstract

This paper simultaneously examines the effects of age, period and birth cohort on the evolution
of the Australian gender wage gap from 2001-18. It employs the proxy variable approach within
the Mincerian earnings function to overcome the Age-Period-Cohort (APC) identification
problem while also controlling for employment selection and individual human capital
accumulation. The paper corroborates previous evidence of a widening gender wage gap with
age. It also provides new evidence of period effects suppressing female wage rates compared
to male rates. However, as opposed to expectations, the study finds no significant influence of
birth cohort effects on the Australian gender wage gap. The results also suggest that the failure
to control for period effects can lead to significant cohort effects or substantial overestimation
of age or cohort effects on wages. The findings of the paper have implications for a range of
studies that employ Mincer-type earnings functions in addition to policy implications.

Item Type: Report (Discussion Paper)
Authors/Creators:Kamal, M and Blacklow, P
Keywords: gender, wage gap, age, period, cohort, Australia
Publisher: University of Tasmania
Copyright Information:

Copyright 2021 University of Tasmania

Additional Information:

Discussion Paper Series N 2021-02
JEL Classification: C33, J16, J31

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