Gender Wage Differentials in a Competitive Labor Market

P Francois, Jan van Ours

Research output: Book/Report/Inaugural speech/Farewell speechReportAcademic

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 languageUndefined/Unknown
Volume2000-85
Publication statusPublished - 2000
Externally publishedYes

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