The role of gender differences in labour market behaviour in determining the UK male-female wage differential is examined using the British Household Panel Study and the general equilibrium job search framework of Bowlus(1997). We find that search behaviour explains 30-35% of the gender wage differential. This is similar to US findings. Despite more generous maternity policies, females in the UK are more likely to exit to non-participation. Finally, we find the level of search friction is lower in the UK than in the US due to low job destruction rates in the UK.
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Find related papers by JEL classification: J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
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