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On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics de la Rica, Sara
Dolado, Juan J.
García-Peñalosa, Cecilia
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This paper considers a simple model of self-fulfilling expectations that leads to a multiple equilibrium of gender gaps in wages and participation rates. Rather than resorting to moral hazard problems related to unobservable effort, like in most of the related literature, our model fully relies on statistical discrimination. If firms believe that women will quit their jobs more often than equally productive men when shocks affecting household chores take place, our model predicts that this belief will increase the wage gap in favour of men which, in turn, will increase the female share of housework and exacerbate lower female participation in the labour market. Hence, both effects lead to a gendered equilibrium with large gaps, even though an ungendered equilibrium with no gaps is feasible. We examine the effects of gender-based and gender-neutral subsidies and find that the latter are more effective in removing the gendered equilibrium. Empirical analysis based on a time use survey for Spain is provided to test most of the implications of the model.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
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Date of creation: Jun 2008Date of revision:
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Keywords: gender wage gap multiple equilibria participation Other versions of this item:
Paper Sara de la Rica & Juan José Dolado & Cecilia García-Peñalosa, 2008.
"On gender gaps and self-fulfilling expectations: Theory, policies and some empirical evidence ,"
Working Papers
2008-24, FEDEA.
[Downloadable!] de la Rica, Sara & Dolado, Juan José & García-Peñalosa, Cecilia, 2008.
"On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence ,"
IZA Discussion Papers
3553, Institute for the Study of Labor (IZA).
[Downloadable!] Find related papers by JEL classification: J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports :
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