This chapter shows that the algorithm recently proposed to decompose the Foster and Wolfson bipolarization index by income sources (see Bárcena-Martin, Deutsch, & Silber, forthcoming ) may be extended to break down wage bipolarization by its determinants. The chapter gives an empirical...

This paper extends the famous Blinder and Oaxaca (1973) discrimination in several directions. First, the wage difference breakdown is not limited to two groups. Second, a decomposition technique is proposed that allows analysis of the determinants of the overall wage dispersion. The authors’...