Bonjour, Dorothé; Gerfin, Michael - In: Swiss Journal of Economics and Statistics (SJES) 131 (1995) IV, pp. 701-710
In order to analyze the earnings differential between women and men DlEKMANN and ENGELHARDT (1995) estimate income functions using hours worked as an exogenous explanatory variable. Their model is misspecified because hours of work should in fact be treated as an endogenous variable. In this...