TY  - RPRT
        AU  - Li, Jiang
AU  - Dostie, Benoit
AU  - Simard-Duplain, Gaëlle
        TI  - What Is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?
        PY  - 2020/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13907
        UR  - https://www.iza.org/index.php/publications/dp13907
        AB  - 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.
        KW  - gender wage gap
KW  - firm effects
KW  - marital status
KW  - linked employer-employee data
KW  - pay-setting
KW  - sorting
        ER  -