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The Gender Pay Gap: Micro Sources and Macro Consequences
(Forthcoming Article) - Using linked employer-employee data from Brazil, we document a
significant gender pay gap, which is largely attributed 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 account for half of the gender pay gap.
Equal-treatment policies partly close gender gaps but are not outputor
welfare-improving.