TY - RPRT AU - Averkamp, Dorothée AU - Bredemeier, Christian AU - Juessen, Falko TI - Decomposing Gender Wage Gaps: A Family Economics Perspective PY - 2020/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13601 UR - https://www.iza.org/publications/dp13601 AB - We show that parts of the unexplained wage gap in standard Oaxaca-Blinder decompositions result from the neglect of the role played by the family for individual wages. We present a simple model of dual-earner households facing a trade-off regarding whose career to promote and show analytically that the standard Oaxaca-Blinder approach overestimates the degree of pay discrimination. Unbiased decompositions can be obtained when the Oaxaca-Blinder wage equation is augmented by the characteristics of the individual's partner. In an empirical application, we find that this extended decomposition explains considerably larger shares of the gender wage gap than does the standard decomposition. KW - dual-earner households KW - gender wage gap KW - Oaxaca-Blinder KW - discrimination ER -