Dear all,

First of all, Happy New Year.

I use the Firpo, Fortin and Lemieux methodology for decomposing the gender pay gap using recentered influence function. The methodology is presented in paper Firpo, S., Fortin, N., & Lemieux, T. (2018). Decomposing Wage Distributions Using Recentered Influence Function Regressions. Econometrics, 6(2), 28. https://doi.org/10.3390/econometrics6020028

The problem is that the method assumes that there is no selection effect, i.e. that the distribution of unobservables is the same across groups, i.e. males and females. Is it possible somehow to use that methodology when there is selection into employment which differs between genders? I would like to combine the FFL methodology with Heckman selection procedure. May I just put Inverse Mills Ratio as the explanatory variable? Is that a "legitimite" computation?

Thank you for your help.

Best wishes,
Aleksandra