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The Gender Gap: Micro Sources and Macro Consequences

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  • Iacopo Morchio

    (University of Vienna)

  • Christian Moser

    (Columbia University)

Abstract

We investigate the sources of the gender wage gap and its relation to firm heterogeneity. We document a gender wage gap of 20 log points conditional on education interacted with experience, state, industry, and occupation among workers in Brazil. Accounting for unobservable worker and firm heterogeneity, we find that around 46 percent of the residual gender wage gap is between firms, while the remainder is within firms. We highlight lower labor market mobility of women relative to men as an important explanatory factor for pay differences both within and between firms. We develop an equilibrium search model with firm productivity differences, worker ability differences, gender-specific amenities, and employer taste for discrimination. We use the estimated model to show that gender differences in life-cycle mobility across employers are a major contributor to the observed gaps and associated with sizable negative consequences for macroeconomic outcomes such as aggregate productivity, employment, and output.

Suggested Citation

  • Iacopo Morchio & Christian Moser, 2019. "The Gender Gap: Micro Sources and Macro Consequences," 2019 Meeting Papers 143, Society for Economic Dynamics.
  • Handle: RePEc:red:sed019:143
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    8. Andreas Gulyas & Sebastian Seitz & Sourav Sinha, 2020. "Does Pay Transparency Affect the Gender Wage Gap? Evidence From Austria," CRC TR 224 Discussion Paper Series crctr224_2020_194v1, University of Bonn and University of Mannheim, Germany.
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    10. Kevin Donovan & Will Jianyu Lu & Todd Schoellman, 2020. "Labor Market Dynamics and Development," Staff Report 596, Federal Reserve Bank of Minneapolis.
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    14. Xiao, Pengpeng, 2021. "Wage and Employment Discrimination by Gender in Labor Market Equilibrium," Working Papers 144, VATT Institute for Economic Research.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • 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

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