The hierarchical models used in this research will differ from those described in prior research in two significant areas: (1) the temporal decomposition and (2) the feedback-and-control mechanisms governing interrelationships between levels.
The temporal decomposition used in this research differs from that used in most prior research in three respects.
The second distinction from prior temporal decompositions is related to the first but goes beyond merely recognizing the different time scales (17).
This study provides the estimates of the temporal decomposition of the gender pay gap using both the mean and the quantile regression approach [Pham and Barry (2006)], which provides quantile measures of the gender wage at two specific points in time, 1997 and 2006, using respective Labour Force Surveys for each of these years.
In the context of the quantile regression approach, we largely relied on the temporal decomposition technique of Pham and Barry (2006).
After some arithmetic operations the temporal decomposition of the gender pay gap can be rewritten as:
In the context of the quantile regression approach, we use a relatively ad hoc method for the temporal decomposition of the gender pay gap at selected quantiles [see Pham and Barry (2006) for details].
The temporal decomposition suggested by Juhn, Murphy and Pierce (1991) could be used to decompose the average pay gap over time but this procedure is neither outlined nor pursued here in terms of the mean regression analysis.