%0 Report
        %A Francois, Patrick
%A Ours, Jan C. van
        %T Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect
        %D 2000
        %8 2000 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 202
        %U https://www.iza.org/publications/dp202
        %X We present a theoretical explanation of the gender wage gap which turns on the interaction between men and women in households. In equilibria where men are over-represented in full-time work, we show that firms rationally choose to hire women only at strictly lower wages than men. The model developed predicts a gap even controlling for education, occupation and industry of workers and does so in a competitive labor market where there exist no inherent gender differences. We test our theory using CPS data over the period 1979-98 and find it is strongly supported by the data.
        %K Gender discrimination
%K household models
%K wage gap