The Gender Pay Gap: Micro Sources and Macro Consequences

Iacopo Morchio and Christian Moser

No 16383, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers with better nonpay attributes. To interpret these facts, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women, that compensating differentials explain half of the gender pay gap, and that there are significant output and welfare gains from eliminating gender differences. However, equal-treatment policies fail to achieve those gains.

Keywords: Earnings inequality; Amenities; Equilibrium search model; Linked employer-employee data; Worker and firm heterogeneity (search for similar items in EconPapers)
JEL-codes: E24 J16 J31 J32 (search for similar items in EconPapers)
Date: 2021-07
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Related works:
Journal Article: The Gender Pay Gap: Micro Sources and Macro Consequences (2026)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2025)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2024)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2023)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2023)
Working Paper: The Gender Pay Gap:Micro Sources and Macro Consequences (2021)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2020)
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