Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314656 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11617
Publisher: 
CESifo GmbH, Munich
Abstract: 
Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers. To interpret this fact, 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 and that compensating differentials explain half of the gender pay gap. Equal-treatment policies partly close gender gaps but are not output- or welfare-improving.
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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