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Equal Pay for Similar Work

Author

Listed:
  • Diego Gentile Passaro
  • Fuhito Kojima
  • Bobak Pakzad-Hurson

Abstract

Equal pay laws increasingly require that workers with different group identities doing "similar" work are paid equal wages within firm. We study such "equal pay for similar work" (EPSW) policies theoretically and test our models' predictions empirically using evidence from a 2009 gender-based Chilean EPSW. Under EPSW, firms segregate their workforce by gender. When there are more men than women in a labor market, EPSW increases the gender wage gap.

Suggested Citation

  • Diego Gentile Passaro & Fuhito Kojima & Bobak Pakzad-Hurson, 2026. "Equal Pay for Similar Work," American Economic Review, American Economic Association, vol. 116(3), pages 977-1013, March.
  • Handle: RePEc:aea:aecrev:v:116:y:2026:i:3:p:977-1013
    DOI: 10.1257/aer.20230832
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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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