DECIG Seminar: May 2024

The Gender Pay Gap: Micro Sources and Macro Consequences

Iacopo Morchio (University of Bristol/UK), 

Christian Moser (Columbia Business School)

Presenter:

Iacopo Morchio

Time:

Wednesday, May 22, 2024

10:00 – 11:00 AM  (ET)

HYBRID SEMINAR: Webex and room F-3K-E-400

(Add to calendar)

Abstract

Link to paper

We document that a large share of the gender pay gap in Brazil is due to women working at lower-paying employers. However, compared with that of men, women’s revealed-preference ranking of employers is less increasing in pay. To interpret these facts, we develop an empirical equilibrium search model with endogenous gender differences in pay, amenities, and recruiting intensities across employers. The estimated model suggests that compensating differentials explain one-fifth of the gender pay gap, that there are significant output and welfare gains from eliminating gender differences, and that equal-treatment policies fail to close the gender pay gap.

For other information, please contact ikoval1@worldbank.org