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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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    References listed on IDEAS

    as
    1. Fuhito Kojima & Bobak Pakzad-Hurson, 2025. "Bertrand Menu Competition," Papers 2504.16842, arXiv.org, revised Jul 2025.
    2. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    3. Harris, Christopher J, 1985. "Existence and Characterization of Perfect Equilibrium in Games of Perfect Information," Econometrica, Econometric Society, vol. 53(3), pages 613-628, May.
    4. Sebastian Calonico & Matias D. Cattaneo & Rocío Titiunik, 2015. "Optimal Data-Driven Regression Discontinuity Plots," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(512), pages 1753-1769, December.
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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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