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Gender wage differentials in Italy: a structural estimation approach

Listed author(s):
  • Giovanni Sulis

    ()

This paper studies gender wage differentials by providing a maximum likelihood structural estimation of the frictional parameters of an equilibrium search model with on-the-job search and firm heterogeneity. In a second step, I also consider the role of discrimination. Results indicate higher level of search frictions for women; this result is confirmed by various robustness checks and by different specification and estimation strategies. I also find that the resulting mapping from productivity to wages for men is highly non-linear, while for women it is almost linear. Search, productivity and discrimination play different roles in shaping the gender differential depending on the specification and estimation of the model. Copyright Springer-Verlag 2012

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File URL: http://hdl.handle.net/10.1007/s00148-010-0351-7
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Article provided by Springer & European Society for Population Economics in its journal Journal of Population Economics.

Volume (Year): 25 (2012)
Issue (Month): 1 (January)
Pages: 53-87

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Handle: RePEc:spr:jopoec:v:25:y:2012:i:1:p:53-87
DOI: 10.1007/s00148-010-0351-7
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  1. Sasaki, Masaru, 1999. "An Equilibrium Search Model with Coworker Discrimination," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 377-407, April.
  2. Luca Flabbi, 2007. "Prejudice and Gender Differentials in the U.S. Labor Market in the Last Twenty Years," Carlo Alberto Notebooks 57, Collegio Carlo Alberto.
  3. van den Berg, Gerard J, 1999. "Empirical Inference with Equilibrium Search Models of the Labour Market," Economic Journal, Royal Economic Society, vol. 109(456), pages 283-306, June.
  4. Giovanni Sulis, 2008. "Wage Dispersion and Equilibrium Search Models: Some Evidence from Italy," LABOUR, CEIS, vol. 22(4), pages 593-627, December.
  5. Del Bono, Emilia & Vuri, Daniela, 2011. "Job mobility and the gender wage gap in Italy," Labour Economics, Elsevier, vol. 18(1), pages 130-142, January.
  6. Bowlus, Audra J & Eckstein, Zvi, 1998. "Discrimination and Skill Differences in an Equilibrium Search Model," CEPR Discussion Papers 1859, C.E.P.R. Discussion Papers.
  7. Cristian Bartolucci, 2013. "Gender Wage Gaps Reconsidered: A Structural Approach Using Matched Employer-Employee Data," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 998-1034.
  8. Eckstein, Zvi & van den Berg, Gerard J., 2003. "Empirical Labor Search: A Survey," IZA Discussion Papers 929, Institute for the Study of Labor (IZA).
  9. Grégory Jolivet & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "The empirical content of the job search model: Labor mobility and wage distributions in Europe and the US," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00279066, HAL.
  10. Rosen, A., 1998. "Search, Bargaining and Employer Discrimination," Papers 1998-13, Uppsala - Working Paper Series.
  11. Luca Flabbi and Andrea Moro, 2011. "The Effect of Job Flexibility on Female Labor Market Outcomes: Estimates from a Search and Bargaining Model," Working Papers gueconwpa~11-11-04, Georgetown University, Department of Economics.
  12. Bowlus, Audra J, 1997. "A Search Interpretation of Male-Female Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 625-657, October.
  13. Luca Flabbi, 2004. "Gender Discrimination Estimation in a Search Model with Matching and Bargaining," 2004 Meeting Papers 367, Society for Economic Dynamics.
  14. Joseph G. Altonji & Rebecca M. Blank, "undated". "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  15. Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
  16. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-333, April.
  17. Ridder, Geert & van den Berg, Gerard J., 2003. "Measuring Labor Market Frictions: A Cross-Country Comparison," IZA Discussion Papers 814, Institute for the Study of Labor (IZA).
  18. Bent Jesper Christensen & Rasmus Lentz & Dale T. Mortensen & George R. Neumann & Axel Werwatz, 2003. "On the Job Search and the Wage Distribution," CAM Working Papers 2004-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  19. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, September.
  20. Usui, Emiko, 2012. "Gender Occupational Segregation in an Equilibrium Search Model," CIS Discussion paper series 560, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  21. Bontemps, Christian & Robin, Jean-Marc & van den Berg, Gerard J, 2000. "Equilibrium Search with Continuous Productivity Dispersion: Theory and Nonparametric Estimation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(2), pages 305-358, May.
  22. Berg, G.J. & Ridder, G., 1993. "An empirical equilibrium search model of the labour market," Serie Research Memoranda 0039, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  23. Audra J. Bowlus & Louise Grogan, 2009. "Gender wage differentials, job search, and part-time employment in the UK," Oxford Economic Papers, Oxford University Press, vol. 61(2), pages 275-303, April.
  24. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
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