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|Title:||Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect |
van Ours, Jan C.
|Issue Date:||2000 |
|Series/Report no.:||IZA Discussion paper series 202|
|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 fulltime 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.|
|Document Type:||Working Paper|
|Appears in Collections:||IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)|
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