NDLI: The Effects of Firms and Equal Pay Laws on the Gender Wage Gap: Evidence from Chile

Content Provider	Semantic Scholar
Author	Rau, Tomás
Copyright Year	2018
Abstract	This paper assesses the total contribution of firms to the gender wage gap using a rich dataset of matched employer-employee data from Chile for the 2005-2013 period. We estimate two-way fixed effects models that allow us to decompose the contribution of firms to the pay gap into two channels: bargaining power and sorting effects. We also assess the effects of an Equal Pay law passed in 2009 on both channels. We find that women receive about 88% of the firm-specific premium earned by men and that firms' total contribution explains about 49% of the gender wage gap. Bargaining power effects account for 20 to 30% of the firms' contribution. The gender wage gap increases after the law which does not affect either bargaining power or sorting effects. JEL: I18, J13, J32
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://jobsanddevelopmentconference.org/wp-content/uploads/2018/05/trau_s2r304.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

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