%0 Report
        %A Li, Jiang
%A Dostie, Benoit
%A Simard-Duplain, Gaëlle
        %T What Is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?
        %D 2020
        %8 2020 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13907
        %U https://www.iza.org/index.php/publications/dp13907
        %X Using data from the Canadian Employer-Employee Dynamics Database between 2001 and 2015, we examine the impact of firms' hiring and pay-setting policies on the gender earnings gap in Canada. Consistent with the existing literature and following Card, Cardoso, and Kline (2016), we find that firm-specific premiums explain nearly one quarter of the 26.8% average earnings gap between female and male workers. On average, firms' hiring practices – due to difference in the relative proportion of women hired at high-wage firms, or sorting – and pay-setting policies – due to differences in pay by gender within similar firms – each explain about one half of this firm effect. The compositional difference between the two channels varies substantially over the life-cycle, by parental and marital status, and across provinces.
        %K gender wage gap
%K firm effects
%K marital status
%K linked employer-employee data
%K pay-setting
%K sorting