ESRI Discussion Paper Series No.320
Estimation of Mincer-type wage function and analysis of wage gap with Blinder-Oaxaca decomposition

Shinji Yoshioka
Senior Research Fellow, Economic and Social Research Institute, Cabinet Office

Abstract

This study estimates the Mincer-type wage function, indicated by Mincer (1974), with attention to some points according to Kawaguchi (2011), utilizing individual data of Basic Survey on Wage Structure. Moreover, to focus on the wage gap, this paper estimates Kernel density functions and employs Blinder-Oaxaca decomposition, developed by Oaxaca (1973)、Blinder (1973)、Oaxaca and Ransom (1994), to attempt to decompose attributional and non-attributional wage gaps, including industrial gaps, regional gaps, firm-size gaps, other than gender gap based on individual data. According to the results, the proportion of attributional gap over full gap is not always dominant, which suggests that one of the causes is the absence of demand factors in the Mincer-type wage function.

  • Keywords: Mincer-type wage function, Blinder-Oaxaca decomposition, Wage gap, Basic Survey on Wage Structure, Individual data analysis
  • JEL Classification: J31, J71
  • 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8914, Japan.
    Tel: +81-3-5253-2111