The Gender Pay Gap: Micro Sources and Macro Consequences

Morchio, Iacopo; Moser, Christian

doi:10.2139/ssrn.3176868

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The Gender Pay Gap: Micro Sources and Macro Consequences

137 Pages Posted: 23 May 2018 Last revised: 12 Jun 2025

See all articles by Iacopo Morchio

Iacopo Morchio

University of Bristol - Department of Economics

Christian Moser

Columbia University; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

There are 2 versions of this paper

Date Written: August 18, 2023

Abstract

Using linked employer-employee data from Brazil, we document a large gender pay gap due to women working at lower-paying employers. To interpret this fact, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women and that compensating differentials explain half of the gender pay gap. Equal-treatment policies partly close gender gaps but are not output- or welfare-improving.

Keywords: Wage Inequality, Amenities, Equilibrium Search Model, Linked Employer-Employee Data, Compensating Differentials, Taste-Based Discrimination, Monopsony Power

JEL Classification: E24, J16, J31, J32

Suggested Citation: Suggested Citation

Morchio, Iacopo and Moser, Christian, The Gender Pay Gap: Micro Sources and Macro Consequences (August 18, 2023). Available at SSRN: https://ssrn.com/abstract=3176868 or http://dx.doi.org/10.2139/ssrn.3176868