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Production, Market Production and the Gender Wage Gap: Incentives and Expectations

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  • Stefania Albanesi

    (Columbia University)

  • Claudia Olivetti

    (Boston University)

Abstract

We study the joint determination of gender differences in labor earnings and time devoted to home production in an economy where informational frictions give rise to incentive problems in the labor market. Our model generates novel predictions on the relation between earnings, home hours and the incidence of performance pay, which we confront with the data. The empirical evidence broadly supports our hypothesis. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2008.08.001
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 12 (2009)
Issue (Month): 1 (January)
Pages: 80-107

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Handle: RePEc:red:issued:06-236

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Related research

Keywords: Gender wage gap; Statistical discrimination; Private information; Labor contracts; Home production;

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References

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  1. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  2. Goldin, Claudia, 1986. "Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 1-27, January.
  3. Stefania Albanesi & Claudia Olivetti, 2006. "Gender and Dynamic Agency: Theory and Evidence on the Compensation of Female Top Executives," Boston University - Department of Economics - Working Papers Series WP2006-061, Boston University - Department of Economics.
  4. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  5. Chiappori, P.A., 1994. "Introducing Household Production in Collective Models of Labour Suply," DELTA Working Papers 94-18, DELTA (Ecole normale supérieure).
  6. Brian J. Hall & Kevin J. Murphy, 2003. "The Trouble with Stock Options," NBER Working Papers 9784, National Bureau of Economic Research, Inc.
  7. Francois, Patrick, 1998. "Gender discrimination without gender difference: theory and policy responses," Journal of Public Economics, Elsevier, vol. 68(1), pages 1-32, April.
  8. Stefania Albanesi & Claudia Olivetti, 2006. "Gender roles and technological progress," 2006 Meeting Papers 411, Society for Economic Dynamics.
  9. Lommerud, K.E. & Vagstad, S., 2000. "Mommy Tracks and Public Policy: On Self-Fulfilling Prophecies and Gender Gaps in Promotion," Norway; Department of Economics, University of Bergen 0600, Department of Economics, University of Bergen.
  10. Bergstrom, T.C., 1993. "A Survey of Theories of the Family," Papers 93-02, Michigan - Center for Research on Economic & Social Theory.
  11. W. Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics and the Form of Compensation," CIRANO Working Papers 98s-08, CIRANO.
  12. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  13. Thomas Lemieux & W. Bentley MacLeod & Daniel Parent, 2007. "Performance Pay and Wage Inequality," NBER Working Papers 13128, National Bureau of Economic Research, Inc.
  14. Brian J. Hall & Kevin J. Murphy, 2003. "The Trouble with Stock Options," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 49-70, Summer.
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Cited by:
  1. repec:aia:ginidp:dp24 is not listed on IDEAS
  2. Flabbi, Luca, 2005. "Gender Discrimination Estimation in a Search Model with Matching and Bargaining," IZA Discussion Papers 1764, Institute for the Study of Labor (IZA).
  3. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance," World Bank Other Operational Studies 12489, The World Bank.

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