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The Gender Pay Gap: Micro Sources and Macro Consequences

Iacopo Morchio¹; Christian Moser²

¹ University of Bristol (email: ) · ² Columbia University, NBER, CEPR, CESifo, and IZA@LISER (email: )

Using linked employer-employee data from Brazil, we document a significant gender pay gap, which is largely attributed to women working at lower-paying employers. To interpret this fact, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women, and that compensating differentials account for half of the gender pay gap. Equal treatment policies partly close gender gaps but are not output- or welfare-improving. (JEL E24, J16, J23, J31, J32, M51, O15)

DOI

10.1257/aer.20231107

Volume

116 (5)

Pages

1765-1810

Language

en

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