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The distribution of the gender wage gap : an equilibrium model
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Bhalotra, Sonia, Fernandez, Manuel and Wang, Fan (2022) The distribution of the gender wage gap : an equilibrium model. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS), 1404 . (Unpublished)
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Official URL: https://warwick.ac.uk/fac/soc/economics/research/w...
Abstract
We develop an equilibrium model of the labor market to investigate the joint evolution of gender gaps in labor force participation and wages. We do this overall and by task-based occupation and skill, which allows us to study distributional effects. We structurally estimate the model using data from Mexico over a period during which women’s participation increased by fifty percent. We provide new evidence that male and female labor are closer substitutes in high-paying analytical task-intensive occupations than in lower-paying manual and routine task-intensive occupations. We find that demand trends favored women, especially college-educated women. Consistent with these results, we see a widening of the gender wage gap at the lower end of the distribution, alongside a narrowing at the top. On the supply side, we find that increased appliance availability was the key driver of increases in the participation of unskilled women, and fertility decline a key driver for skilled women. The growth of appliances acted to widen the gender wage gap and the decline of fertility to narrow it. We also trace equilibrium impacts of growth in college attainment, which was more rapid among women, and of emigration, which was dominated by unskilled men. Our counterfactual estimates demonstrate that ignoring the countervailing effects of equilibrium wage adjustments on labor supplies, as is commonly done in the literature, can be misleading.
| Item Type: | Working or Discussion Paper (Working Paper) | ||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||
| Divisions: | Faculty of Social Sciences > Economics | ||||||
| Library of Congress Subject Headings (LCSH): | Women -- Employment -- Economic aspects -- Econometric models, Pay equity -- Economic aspects -- Econometric models, Sex discrimination in employment, Discrimination in employment -- Economic aspects -- Econometric models, Labor market -- Sex differences, Sex discrimination against women -- Economic aspects -- Econometric models, Labor supply -- Economic aspects -- Econometric models, Women -- Employment -- Effect of technological innovations on | ||||||
| Series Name: | Warwick economics research papers series (WERPS) | ||||||
| Publisher: | University of Warwick. Department of Economics | ||||||
| Place of Publication: | Coventry | ||||||
| ISSN: | 0083-7350 | ||||||
| Official Date: | April 2022 | ||||||
| Dates: |
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| Volume: | 1404 | ||||||
| Institution: | University of Warwick | ||||||
| Status: | Not Peer Reviewed | ||||||
| Publication Status: | Unpublished | ||||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||||
| Date of first compliant deposit: | 12 March 2018 | ||||||
| Date of first compliant Open Access: | 12 March 2018 | ||||||
| RIOXX Funder/Project Grant: |
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