Equal Pay for Similar Work

Diego Gentile Passaro, Fuhito Kojima and Bobak Pakzad-Hurson

American Economic Review, 2026, vol. 116, issue 3, 977-1013

Abstract: Equal pay laws increasingly require that workers with different group identities doing "similar" work are paid equal wages within firm. We study such "equal pay for similar work" (EPSW) policies theoretically and test our models' predictions empirically using evidence from a 2009 gender-based Chilean EPSW. Under EPSW, firms segregate their workforce by gender. When there are more men than women in a labor market, EPSW increases the gender wage gap.

JEL-codes: J16 J31 J38 K31 O15 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/aer.20230832

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