Gender Wage Differentials in a Competitive Labor Market

P Francois; Jan van Ours

Gender Wage Differentials in a Competitive Labor Market

Research output: Book/Report/Inaugural speech/Farewell speech › Report › Academic

Abstract

We present a theoretical explanation of the gender wage gap which turns on the interaction between men and women in households.In equilibria where men are over-represented in full-time work, we show that firms rationally choose to hire women only at strictly lower wages than men.The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labor market where there exist no inherent gender differences. We test our theory using CPS data over the period 1979-98 and find it is strongly supported by the data.

Original language	Undefined/Unknown
Volume	2000-85
Publication status	Published - 2000
Externally published	Yes

Bibliographical note

Pagination: 36

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Cite this

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AU - Francois, P

AU - van Ours, Jan

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N2 - We present a theoretical explanation of the gender wage gap which turns on the interaction between men and women in households.In equilibria where men are over-represented in full-time work, we show that firms rationally choose to hire women only at strictly lower wages than men.The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labor market where there exist no inherent gender differences. We test our theory using CPS data over the period 1979-98 and find it is strongly supported by the data.

AB - We present a theoretical explanation of the gender wage gap which turns on the interaction between men and women in households.In equilibria where men are over-represented in full-time work, we show that firms rationally choose to hire women only at strictly lower wages than men.The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labor market where there exist no inherent gender differences. We test our theory using CPS data over the period 1979-98 and find it is strongly supported by the data.

M3 - Report

VL - 2000-85

BT - Gender Wage Differentials in a Competitive Labor Market

ER -