Citation

Discussion Paper Details

Please find the details for DP2603 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2603

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