Resource title

Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect

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Resource description

We present a theoretical explanation of the gender wage gap which turns on the interaction between men and women in households. In equilibria where men are over-represented in fulltime work, we show that firms rationally choose to hire women only at strictly lower wages than men. The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labor market where there exist no inherent gender differences. We test our theory using CPS data over the period 1979-98 and find it is strongly supported by the data.

Resource author

Patrick Francois, Jan C. van Ours

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21046

Resource license

Adapt according to the presented license agreement and reference the original author.