Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279107 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16409
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers with better nonpay attributes. To interpret these facts, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women, that compensating differentials explain half of the gender pay gap, and that there are significant output and welfare gains from eliminating gender differences. However, equal-treatment policies fail to achieve those gains.
Subjects: 
wage inequality
amenities
equilibrium search model
linked employer-employee data
compensating differentials
taste-based discrimination
monopsony power
JEL: 
E24
J16
J31
J32
Document Type: 
Working Paper

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