Citation
Discussion Paper Details
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Full Details
Title: Gender Wage Differentials in a Competitive Labour Market: The Household Interaction Effect
Author(s): Patrick Francois and Jan C. van Ours
Publication Date: November 2000
Keyword(s): Gender Discrimination, Household Models and Wage Gap
Programme Area(s): Labour Economics
Abstract: We present a theoretical explanation of the gender wage gap that turns on the interaction between men and women in households. In equilibria where men are over-represented in full-time work, we show that firms rationally choose to hire women only at strictly lower wages to men. The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labour 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.
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Bibliographic Reference
Francois, P and van Ours, J. 2000. 'Gender Wage Differentials in a Competitive Labour Market: The Household Interaction Effect'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2603