MIT-xPRO-DSxCase-Study-2.2-Gender-Wage-Gap. Case Study 2.2: Gender Wage Gap Instructor: Victor Chernuzkov Activity Type: Optional Case Study Description: Estimate the difference in predicted wages between men and women with the same job characteristics. Why this Case Study? Participants can pose an economic question and investigate that question using a linear regression model. Self-Help Package Contents: The video that covers this case study is given in Module 2, Segment 1.6. Self-help-package.zip Codebook.txt contains the description of worker job-relevant characteristics. pay.discrimination.Rdata: the CPS (2012) data on wages and job-relevant worker characteristics, such as experience exp, gender, education. Regression1.6.CaseStudy.R estimates gender wage gap, i.e., difference in predicted wages between men and women with same job-relevant characteristics. The gap is estimated in two steps: (1) residualizing the outcome (wages) and covariate of interest (gender) (taking residuals from corresponding regressions on worker characteristics), and (2) computing the correlation between residualised wages on residualised gender. Both linear and quadratic specifications are tried at residualizing step. Regression.1.6.pdf is the set of slides that describes the estimation technique and present the results. .Rhistory