The Gender Pay Gap: Micro Sources and Macro Consequences

Iacopo Morchio and Christian Moser

No 78, Opportunity and Inclusive Growth Institute Working Papers from Federal Reserve Bank of Minneapolis

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 amenities. To interpret these facts, we develop an equilibrium search model with endogenous firm pay, amenities, and employment. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for 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: Monopsony; Amenities; Earnings inequality; Linked employer-employee data; Equilibrium search model; Taste-based discrimination; Worker and firm heterogeneity; Compensating differentials (search for similar items in EconPapers)
JEL-codes: E24 J16 J31 J32 (search for similar items in EconPapers)
Date: 2023-09-06
New Economics Papers: this item is included in nep-bec, nep-dge and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.minneapolisfed.org/institute/working-papers-institute/iwp78.pdf (application/pdf)

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 (2021)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2021)
Working Paper: The Gender Pay Gap: Micro Sources and Macro Consequences (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmoi:96702

DOI: 10.21034/iwp.78

Access Statistics for this paper

More papers in Opportunity and Inclusive Growth Institute Working Papers from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().