Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Explaining the Gender Wage Gap: Estimates from a Dynamic Model of Job Changes and Hours Changes.
Abstract: I address the causes of the gender wage gap with a new
dynamic model of wage, hours, and job changes that permits me to decompose
the gap into a portion due to gender differences in preferences for
part-time work and in onstraints. The dynamic model allows the differences
in constraints to reflect possible gender differences in job arrival rates,
job destruction rates, the mean and variance of the wage offer
distribution, and the full-time/part-time wage premium. I find that the
differences in preferences explain no more than 5% of the gender gap in
hourly wages and 7-20% of the gender gap in weekly wages. The differences
in constraints, mainly in the form of differences in the mean offered
wages, explain the remaining gender wage gap. Most of the gender
differences in employment, hours of work and job turnover can be attributed
to the differences in preferences.
Keywords: Gender differences; employment; (follow links to similar papers)
JEL-Codes: J16; J31; J63; (follow links to similar papers)
41 pages, June 22, 2012
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