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Production, Market Production and the Gender Wage Gap: Incentives and Expectations

Author

Listed:
  • Stefania Albanesi

    (Columbia University)

  • Claudia Olivetti

    (Boston University)

Abstract

We study the joint determination of gender differences in labor earnings and time devoted to home production in an economy where informational frictions give rise to incentive problems in the labor market. Our model generates novel predictions on the relation between earnings, home hours and the incidence of performance pay, which we confront with the data. The empirical evidence broadly supports our hypothesis. (Copyright: Elsevier)

Suggested Citation

  • Stefania Albanesi & Claudia Olivetti, 2009. "Production, Market Production and the Gender Wage Gap: Incentives and Expectations," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 80-107, January.
  • Handle: RePEc:red:issued:06-236
    DOI: 10.1016/j.red.2008.08.001
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    References listed on IDEAS

    as
    1. Thomas Lemieux & W. Bentley MacLeod & Daniel Parent, 2009. "Performance Pay and Wage Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 124(1), pages 1-49.
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    4. Stefania Albanesi & Claudia Olivetti, 2006. "Gender roles and technological progress," 2006 Meeting Papers 411, Society for Economic Dynamics.
    5. Brian J. Hall & Kevin J. Murphy, 2003. "The Trouble with Stock Options," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 49-70, Summer.
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    7. Goldin, Claudia, 1986. "Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 1-27, January.
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    9. Stefania Albanesi & Claudia Olivetti, 2006. "Gender and Dynamic Agency: Theory and Evidence on the Compensation of Female Top Executives," Boston University - Department of Economics - Working Papers Series WP2006-061, Boston University - Department of Economics.
    10. Chiappori, Pierre-Andre, 1997. "Introducing Household Production in Collective Models of Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 191-209, February.
    11. Brian J. Hall & Kevin J. Murphy, 2003. "The Trouble with Stock Options," NBER Working Papers 9784, National Bureau of Economic Research, Inc.
    12. W. Bentley MacLeod & Daniel Parent, 1998. "Job Characteristics and the Form of Compensation," CIRANO Working Papers 98s-08, CIRANO.
    13. Junichiro Ishida, 2003. "The Role of Intrahousehold Bargaining in Gender Discrimination," Rationality and Society, , vol. 15(3), pages 361-380, August.
    14. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-1240, December.
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    Cited by:

    1. Doepke, M. & Tertilt, M., 2016. "Families in Macroeconomics," Handbook of Macroeconomics, Elsevier.
    2. Luca Flabbi, 2010. "Gender Discrimination Estimation In A Search Model With Matching And Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 745-783, August.
    3. repec:eme:rleczz:s0147-912120150000042001 is not listed on IDEAS
    4. Stefania Albanesi & Claudia Olivetti & María José Prados, 2015. "Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives," Research in Labor Economics,in: Gender in the Labor Market, volume 42, pages 1-59 Emerald Publishing Ltd.
    5. Ductor, L & Goyal, S. & Prummer, A., 2018. "Gender & Collaboration," Cambridge Working Papers in Economics 1820, Faculty of Economics, University of Cambridge.
    6. Wei-Bin ZHANG, 2014. "Gender Discrimination, Education and Economic Growth in a Generalized Uzawa-Lucas Two-Sector Model," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 7(1), pages 1-34.
    7. Stefania Albanesi & Aysegul Sahin, 2018. "The Gender Unemployment Gap," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 47-67, October.
    8. Stefania Albanesi & Claudia Olivetti, 2016. "Gender Roles and Medical Progress," Journal of Political Economy, University of Chicago Press, vol. 124(3), pages 650-695.
    9. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    10. Gabriela Calderón, 2014. "The Effects of Child Care Provision in Mexico," Working Papers 2014-07, Banco de México.
    11. Zvi Eckstein & Osnat Lifshitz, 2015. "Household Interaction And The Labor Supply Of Married Women," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 427-455, May.
    12. Boragan Aruoba & Morris Davis & Randall Wright, 2016. "Homework in Monetary Economics: Inflation, Home Production, and the Production of Homes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 21, pages 105-124, July.
    13. Flabbi, Luca & Macis, Mario & Moro, Andrea & Schivardi, Fabiano, 2014. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," IZA Discussion Papers 8602, Institute for the Study of Labor (IZA).
    14. Natalia Nollenberger & Núria Rodríguez-Planas & Almudena Sevilla, 2016. "The Math Gender Gap: The Role of Culture," American Economic Review, American Economic Association, vol. 106(5), pages 257-261, May.
    15. Wei-Bin Zhang, 2016. "Population Growth And Preference Change In A Generalized Solow Growth Model With Gender Time Distributions," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 7-30, September.
    16. Luca Flabbi & Claudia Piras & Scott Abrahams, 2017. "Female corporate leadership in Latin America and the Caribbean region: Representation and firm-level outcomes," International Journal of Manpower, Emerald Group Publishing, vol. 38(6), pages 790-818, September.
    17. Holger Sieg & Yu Wang, 2017. "The Impact of Student Debt on Education, Career, and Marriage Choices of Female Lawyers," NBER Working Papers 23453, National Bureau of Economic Research, Inc.
    18. Ilse Lindenlaub & Anja Prummer, 2016. "Gender, Social Networks and Peformance," Working Papers 807, Queen Mary University of London, School of Economics and Finance.
    19. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance
      [Trabajo & familia : mujeres de América Latina y el Caribe en busca de un nuevo equilibrio - Resumen ejecuivo (Vol. 2
      ," World Bank Other Operational Studies 12489, The World Bank.
    20. repec:prg:jnlpol:v:2017:y:2017:i:5:id:1167:p:623-646 is not listed on IDEAS
    21. repec:aia:ginidp:dp24 is not listed on IDEAS

    More about this item

    Keywords

    Gender wage gap; Statistical discrimination; Private information; Labor contracts; Home production;

    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
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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