In a Oaxaca decomposition, the "unexplained" portion of the wage gap is typically thought to Overstate the true extent of if there are no skill differences between discrimination unobservable the groups. Overstate the true extent of discrimination if discrimination leads to observable skill differences between the groups.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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In a Oaxaca decomposition, the
"unexplained" portion of the wage gap
is typically thought to
Overstate the true extent of
if there are no
skill differences between
discrimination
unobservable
the groups.
Overstate the true extent of
discrimination if discrimination leads to
observable skill differences between
the groups.
Transcribed Image Text:In a Oaxaca decomposition, the "unexplained" portion of the wage gap is typically thought to Overstate the true extent of if there are no skill differences between discrimination unobservable the groups. Overstate the true extent of discrimination if discrimination leads to observable skill differences between the groups.
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