Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect

P. Francois; J.C. van Ours

Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect

P. Francois
, J.C. van Ours

Research Group: Economics

Research output: Working paper › Discussion paper › Other research output

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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 full-time 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.

Original language	English
Place of Publication	Tilburg
Publisher	Macroeconomics
Number of pages	36
Volume	2000-85
Publication status	Published - 2000

Publication series

Name	CentER Discussion Paper
Volume	2000-85

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 5 Gender Equality
SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities

Keywords

gender discrimination
household models
wage gap

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85

Cite this

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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 full-time 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.",

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AU - van Ours, J.C.

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PY - 2000

Y1 - 2000

N2 - 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 full-time 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.

AB - 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 full-time 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.

KW - gender discrimination

KW - household models

KW - wage gap

M3 - Discussion paper

VL - 2000-85

T3 - CentER Discussion Paper

BT - Gender Wage Differentials in a Competitive Labor Market

PB - Macroeconomics

CY - Tilburg

ER -

Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect

Abstract

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UN SDGs

Keywords

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