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The gender reservation wage gap: evidence from British panel data

  • Sarah Brown

    ()

    (Department of Economics, The University of Sheffield Author-Person=pbr160)

  • Jennifer Roberts

    ()

    (Department of Economics, The University of Sheffield)

  • Karl Taylor

    ()

    (Department of Economics, The University of Sheffield)

Our findings suggest the existence of a gender reservation wage gap, with a differential of around 10%. The presence of children, particularly pre-school age children, plays an important role in explaining this differential. For individuals without children, the explained component of the differential is only 5%, which might indicate that perceived discrimination in the labour market influences the reservation wage setting of females.

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File URL: http://www.shef.ac.uk/economics/research/serps/articles/2010_010.html
File Function: First version, 2010
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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2010010.

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Length: 9 pages
Date of creation: May 2010
Date of revision: May 2010
Handle: RePEc:shf:wpaper:2010010
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  1. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  2. Blackaby, David H. & Latreille, Paul L. & Murphy, Philip D. & O'Leary, Nigel C. & Sloane, Peter J., 2006. "An Analysis of Reservation Wages for the Economically Inactive," IZA Discussion Papers 1980, Institute for the Study of Labor (IZA).
  3. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
  4. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-76, November.
  5. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S33-58, January.
  6. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
  7. Sarah Brown & Jennifer Roberts & Karl Taylor, 2010. "Reservation wages, labour market participation and health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 501-529.
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