Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238305 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 94
Publisher: 
Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE), Milano
Abstract: 
This paper presents a model where wage differences between men and women arise from taste-based discrimination and monopsonistic mechanisms. We show how preferences against women affect heterogeneity in firms' pay policies in the context of an imperfect labour market, deriving a test for the presence of taste-based discrimination and of other firm-level mechanisms driving the gender wage gap, in particular compensating wage differentials. These results inform an analysis of sex pay differences in the Italian manufacturing sector showing that preferences for workplaces providing more flexible schedules are a significant determinant of the gender wage gap. Taste-based discrimination mechanisms appear to be significant as well, but small in size.
Subjects: 
Gender Wage Gap
Taste-Based Discrimination
Monopsonistic Discrimination
Compensating Wage Differentials
Firm Wage Policy
Matched Employer-Employee Data
JEL: 
J00
J16
J31
J71
Document Type: 
Working Paper

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