The Gender Pay Gap: Micro Sources and Macro Consequences

Christian Moser and Iacopo Morchio

No 16383, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We document that a large share of the gender pay gap in Brazil is due to women working at lower-paying employers. However, compared with that of men, women's revealed-preference ranking of employers is less increasing in pay. To interpret these facts, we develop an empirical equilibrium search model with endogenous gender differences in pay, amenities, and recruiting intensities across employers. The estimated model suggests that compensating differentials explain one-fifth of the gender pay gap, that there are significant output and welfare gains from eliminating gender differences, and that equal-treatment policies fail to close the gender pay gap.

Keywords: Empirical equilibrium search model; Linked employer-employee data; Worker and firm heterogeneity; Misallocation; Compensating differentials; Discrimination (search for similar items in EconPapers)
JEL-codes: E24 E25 J16 J31 (search for similar items in EconPapers)
Date: 2021-07
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Related works:
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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