Abstract

http://ssrn.com/abstract=1522280
 
 

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Gender Pay Gap


Graciela Chichilnisky


Columbia University

August 1, 2009

International Journal of Green Economics, 2009

Abstract:     
We discuss the special role of women in Green Economics. The article explains the origins of the gender pay gap as a Nash equilibrium of a game with incomplete information about women's work at home and in the marketplace. Expectations about women's lower market wages leads to the overutilization of women in the household, and this, in turn, leads to lower productivity and lower wages for women in the marketplace. The situation is rational but (as the prisoner's dilemma) it is generally Pareto inferior. Inequity at home breads inequity in the marketplace and reciprocally, leading to a persistent gender gap. With learning by doing, at high levels of skill there is a Pareto superior equilibrium where men and women share efforts equally at home and receive the same pay in the marketplace, firms enhance their profits, and there is additionally more welfare at home. Updated Family Law and appropriate contracts can help resolve this Pareto inferior situation as well as increase productivity and economic growth in the economy as a whole (Pyle, 1990).

Number of Pages in PDF File: 17

JEL Classification: J7, D1, D5, D6

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Date posted: February 5, 2010  

Suggested Citation

Chichilnisky, Graciela, Gender Pay Gap (August 1, 2009). International Journal of Green Economics, 2009. Available at SSRN: http://ssrn.com/abstract=1522280 or http://dx.doi.org/10.2139/ssrn.1522280

Contact Information

Graciela Chichilnisky (Contact Author)
Columbia University ( email )
3022 Broadway
New York, NY 10027
United States
212 678 1148 (Phone)
212 678 0405 (Fax)
HOME PAGE: http://www.chilchilnisky.com
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