Double selection process reveals underestimated male-female wage differentials in US.
The wage difference between men and women in the US labor market can be misleading if not analyzed correctly. By looking at both workers' decision to join the labor market and employers' decision to hire, we can get a more accurate picture. A study using data from the National Longitudinal Survey of Youth found that when these selection processes are ignored, the wage gap between men and women is underestimated. This means that the true difference in wages between men and women is larger than previously thought.