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In this article, we examine the effect of incorporating the fields of study on the explained and unexplained components of the standard Oaxaca decomposition for the gender wage gaps in Taiwan using 1997 2003 Manpower Utilization Survey data.
The unexplained components of the manager and professional categories are 15.8% and 19.4% respectively, compared with only a 9.3% gap within the clerical/service category.
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The second term is the unexplained component of the wage gap.
19Besides the unexplained component of the wage gap, the effects of discrimination could be picked up by the Country of birth fixed effects.
Decomposition estimations from different time periods indicate the pro-UK-born unexplained component of the wage gap is an increasing source of the pay gap.
Third, the largest unexplained component of the decomposition is education, which favours natives more compared to non-English-speaking than English-speaking immigrants.
The unexplained component of the wage gap reflects the extent to which the observed skills of immigrants are not valued as much as those of natives in the host country's labor market.
The coefficient effect favours natives and increases across the distribution such that the level of the unexplained component of the wage gap is greater for higher-skilled immigrants, approximately 0.2 log points at the 75th and 90th percentile.
However, the coefficient or unexplained component of the gap dominates in 2014, accounting for 70.2% of the estimated rural-urban differentials in the probability of a full immunization of a child.
Over the period investigated, the pro-UK-born unexplained component of the wage gap was greater at the bottom of the distribution and has shifted towards the centre of the distribution.
In 2009, the differential shifted towards the middle of the distribution and the lack of wage assimilation for low- to medium-skilled immigrants was increasingly attributed to the unexplained component of the wage gap.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com