The Gender Pay Gap: Micro Sources and Macro Consequences

Iacopo Morchio and Christian Moser

No 16409, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: wage inequality; amenities; equilibrium search model; linked employer-employee data; compensating differentials; taste-based discrimination; monopsony power (search for similar items in EconPapers)
JEL-codes: E24 J16 J31 J32 (search for similar items in EconPapers)
Pages: 109 pages
Date: 2023-08
New Economics Papers: this item is included in nep-dge, nep-hrm and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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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 (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)
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