WAGE DISCRIMINATION - A STATISTICAL TEST

Measurements of wage discrimination, based on gender, age, race or rel igion, are important for empirical economists. Traditional approaches to the measurement of wage discrimination do not set up the question o f discrimination as a hypothesis that can be statistically tested. Fur thermore, they face the so called 'index number problem'. In this pape r, an alternative approach is presented where wage discrimination can be tested as a statistical hypothesis. Furthermore, the proposed metho d eliminates the index number problem.