An Equilibrium Analysis of the Gender Wage Gap

Arbeitspapier

This paper develops a theory of the gender wage gap. In a general equilibrium model, spouses devide their labor between a formal sector and a home sector. Due to indivisibility effects, productivity of labor in the formal sector is negatively related to labor used in the home; at the same time labor inputs are complementary in home production. We show that initial beliefs about the gender wage gap are self-fulfilling, and a central result is multiplicity of equilibria. Spouses allocate their labor equally, if they expect to earn the same wage rates, which ex post reinforces equal wage rates; whereas they allocate their labor differently, if they expect to earn different wage rates. The latter situation manifests itself in a gender wage gap. By use of numerical examples, we show that welfare is highest when spouses allocate labor equally. We relate this finding to policy recommendations.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: EPRU Working Paper Series ; No. 2006-08

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Household Production and Intrahousehold Allocation ; Economics of Gender; Non-labor Discrimination ; Time Allocation and Labor Supply ; Wages, Compensation, and Labor Costs: General
• Thema: gender wage gap ; household models ; household production ; labor markets

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hermann Frederiksen, Elisabeth
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (wo): Copenhagen
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/82014
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ