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http://hdl.handle.net/10419/21046
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| Title: | | Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect  |
| 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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