Gender Income Difference Test

[badman127]

Hi everybody,
I have the data of about 5000 observations about the income factors of male and female. I want to generate OLS regression for each gender's income (meaning that I will get 2 separate equations for male and female income respectively)
But I have trouble in comparing the gap between the income of male and female.
Any suggestion about the Test or model that I can use to find the income difference in gender?
Thanks a lot.

[startz]

Hi everybody,
I have the data of about 5000 observations about the income factors of male and female. I want to generate OLS regression for each gender's income (meaning that I will get 2 separate equations for male and female income respectively)
But I have trouble in comparing the gap between the income of male and female.
Any suggestion about the Test or model that I can use to find the income difference in gender?
Thanks a lot.

Suppose that income is Y, there is an explanatory variable X, and D is a dummy variable coded 1 for women. You can run the equation

Code: Select all

ls Y C X D D*X

The coefficient on D tells you the difference in the intercept and the coefficient on D*X tells you the difference in the effect of X on Y.

[badman127]

Hi everybody,
I have the data of about 5000 observations about the income factors of male and female. I want to generate OLS regression for each gender's income (meaning that I will get 2 separate equations for male and female income respectively)
But I have trouble in comparing the gap between the income of male and female.
Any suggestion about the Test or model that I can use to find the income difference in gender?
Thanks a lot.

Suppose that income is Y, there is an explanatory variable X, and D is a dummy variable coded 1 for women. You can run the equation

Code: Select all

ls Y C X D D*X

The coefficient on D tells you the difference in the intercept and the coefficient on D*X tells you the difference in the effect of X on Y.

Dear Startz,
Thanks for your help but the main problem here is about my data.
Here is the description of the factors:
earns Wife’s weekly earnings
educ Wife’s years of schooling
age Wife’s age
exper Age – educ – 6
union =1 if wife is in union
kidge6 =1 if child>=6 in family
kidlt6 =1 if child<6
hours Wife’s weekly hours
inlf =1 if wife is in labour force
nwifeinc Non-wife income, $1000s
faminc Annual family income
husage Husband’s age
husearns Husband’s weekly earnings
husunion =1 if husband is in union
huseduc Husband’s years of schooling
husexp Husage – Huseduc – 6
hushrs Husband’s weekly hours
With this data I need to estimate Earnings Function separately for male and female, and assess the gender differences. Therefore I think it's hard to generate the model as you mentioned above :(
Please help!

[startz]

The equation I gave you does estimate the equations separately. But you can also go

Code: Select all

smpl if D ls y c x smpl if not D ls y c x

[badman127]

Please take a look at the data, each row represents a household with a husband and a wife, and I don't know how to deal with it to generate the dummy variables you're saying :(
The model you said is really good, but how to achieve it is too hard for me :(

Thanks for your help in advance!

[startz]

Run one regression with earns as the dependent variable and one with husearns as the dependent variable?

[badman127]

That's exactly what I have done, I got the estimation for those 2.
And the thing I tried to ask is how to assess the gender difference in income?
Sorry if I couldn't clarify it from the beginning.

[startz]

What do you mean by "assess the difference?" If your assignment is what I think it is, you might google "Blinder-Oaxaca Decomposition"