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The Return to Hours Worked within and across Occupations: Implications for the Gender Wage Gap

Author

Listed:
  • Denning, Jeffrey T.

    (University of Notre Dame)

  • Jacob, Brian A.

    (University of Michigan)

  • Lefgren, Lars

    (Brigham Young University)

  • vom Lehn, Christian

    (Brigham Young University)

Abstract

Prior research suggests that gender differences in hours worked play an important role in the gender pay gap. Yet common estimates of the wage returns to hours worked are close to zero, implying that hours differences cannot account much for the gender wage gap, even though men work more hours than women on average. However, while the wage returns to hours worked within occupation are small, we document that the wage returns to average hours worked across occupations are large. We develop a conceptual framework that reconciles these facts. We show that, under some assumptions, gender differences in hours worked can account for a substantial portion of the gender wage gap and that increases in the returns to hours worked over the past four decades slowed progress in reducing the gender pay gap.

Suggested Citation

  • Denning, Jeffrey T. & Jacob, Brian A. & Lefgren, Lars & vom Lehn, Christian, 2021. "The Return to Hours Worked within and across Occupations: Implications for the Gender Wage Gap," IZA Discussion Papers 14325, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14325
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    References listed on IDEAS

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    1. German Cubas & Chinhui Juhn & Pedro Silos, 2023. "Coordinated Work Schedules and the Gender Wage Gap," The Economic Journal, Royal Economic Society, vol. 133(651), pages 1036-1066.
    2. Kevin L. McKinney & John M. Abowd & Hubert P. Janicki, 2022. "U.S. long‐term earnings outcomes by sex, race, ethnicity, and place of birth," Quantitative Economics, Econometric Society, vol. 13(4), pages 1879-1945, November.
    3. Alexander Bick & Adam Blandin & Richard Rogerson, 2022. "Hours and Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(3), pages 1901-1962.
    4. Contensou, François & Vranceanu, Radu, 2019. "Working time and wage rate differences : a contract theory approach," ESSEC Working Papers WP1913, ESSEC Research Center, ESSEC Business School, revised 06 Mar 2021.
    5. Del Rey, Elena & Naval, Joaquín & Silva, José I., 2022. "Hours and wages: A bargaining approach," Economics Letters, Elsevier, vol. 217(C).
    6. Contensou, François & Vranceanu, Radu, 2021. "Working time and wage rate differences: Revisiting the role of preferences and labor scarcity," Research in Economics, Elsevier, vol. 75(2), pages 164-175.

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    More about this item

    Keywords

    gender wage gap; hours; wages; occupation;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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