January 2011

IZA DP No. 5457: The Gender Reservation Wage Gap: Evidence form British Panel Data

published in: Economics Letters, 2011, 113 (1), 88-91

Our findings suggest the existence of a gender reservation wage gap. The presence of children, particularly pre-school age children, plays an important role in determining the proportion of this gap that can be explained by individual characteristics. For individuals without children, the unexplained component of the differential is 99% compared to only 22% for those with pre-school age children, which might indicate that perceived discrimination in the labour market influences the reservation wage setting of females.