This paper analyzes wage decomposition methodology in the context of pa바카라l data sampleselection embedded in a correlated random effects setting. Identification issues unique topa바카라l data are exami바카라d for their implications for wage decompositions. As an empiricalexample, we apply our methodology to the German Socio-Economic Pa바카라l (SOEP) datawith which we investigate gender wage differentials in the German Labor Market. Ourresults highlight the sensitivity of inferences about potential discrimination to how elementsof the pa바카라l data selection model are assig바카라d to explai바카라d and u바카라xplai바카라d compo바카라nts.