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Changes in hourly wage inequality could be explained by differences in observable characteristics, such as experience and education; different prices for different skills in the labor market; and unobservables, that is, differences in prices and skills within groups.
The total score gap between 2000 and 2009 is 40 points, of which approximately 22 points (55%) can be explained by differences in observable endowments between the two PISA tests.14 15.14
The last term on the right hand side of equation (5) is the part of the wage gap that can be explained by differences in observable characteristics between male and female workers in that industry, while the first three terms give the unexplained or the residual wage gap (the part attributed to gender differences in market returns to those observable characteristics).
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Enrichment-related differences in observable cognitive performance did emerge during more challenging task demands.
The first, the explained component, reflects differences in observable characteristics between groups.
The first term in square brackets, in equation 5, represents the 'Ethnic' effect: it is the difference in the average probabilities of a male birth between the two groups resulting from inter-ethnic differences in unobserved endowments (as exemplified by differences in the coefficient vectors) conditional on all observable covariates.
Using Blinder-Oaxaca decomposition techniques, we can identify whether the rural urban wage differential is driven by observable differences in human capital endowments between rural and urban workers.
In their analyses of the same data both Augurzky et al. [20] and Kopetsch and Schmitz [21] demonstrated that a large proportion of the regional variation in hospitalizations and physician consultations could be explained by observable differences in demographic structures and state of health.
The changes in hippocampal DNA methylation and gene expression were not accompanied by observable differences in gross tissue histology, overall quality of DNA, or even the litter sizes among the cocaine and control groups.
Evolved mutants were identified by observable differences in RFP expression and inhibition after 6 hours of induction using a Fluostar OPTIMA microplate reader (BMG Labtechnologies).
By combining difference-in-differences techniques with matching, we reduce the bias in the estimated treatment effect by assuring that treated and controls have the same distributions of observable factors.
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