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Title:Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect PDF Logo
Authors:Francois, Patrick
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.
Subjects:Gender discrimination
household models
wage gap
JEL:J41
J16
J71
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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