TY  - RPRT
        AU  - Francois, Patrick
AU  - Ours, Jan C. van
        TI  - Gender Wage Differentials in a Competitive Labor Market: The Household Interaction Effect
        PY  - 2000/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 202
        UR  - https://www.iza.org/publications/dp202
        AB  - 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.
        KW  - Gender discrimination
KW  - household models
KW  - wage gap
        ER  -