Table 4a

Explanatory power of detailed occupation dummies, 1979–2007

Women Men
R-squared Partial R-squared R-squared Partial R-squared
(1) (2) (3) (4)
1979 0.355 0.294 0.370 0.206
1989 0.446 0.368 0.444 0.269
2000 0.418 0.340 0.424 0.273
2007 0.405 0.313 0.415 0.265
Change
1979–1989 0.092 0.075 0.075 0.063
1989–2000 -0.029 -0.028 -0.020 0.005
2000–2007 -0.012 -0.027 -0.009 -0.008

Note: The R-squares are from cross-sectional OLS regressions of log hourly wages on the 250+ detailed occupation dummies, along with (in all cases) a quartic in age, and dummies for region of the country (using the four major Census regions), marital status, and race/ethnicity (using mutually exclusive categories of white non-Hispanic, black non-Hispanic, Hispanic any race, and other).  The partial R-squares are calculated in the following way:  the log hourly wage and each detailed occupation dummies are separately regressed on the remaining controls (the quartic in age and the dummies for region, marital status, and race/ethnicity).  Using the residuals from these regressions, residual log hourly wages are regressed separately on the residuals from the occupation dummies regressions. The partial R-squares are the R-squares from these regressions.

Source: Authors' analysis of Current Population Survey Outgoing Rotation Group microdata

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