1887

OECD Social, Employment and Migration Working Papers

This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.

English, French

The role of bargaining and discrimination in the gender wage gap in France

A cross-country perspective

This paper contributes to a better understanding of the role of bargaining and discrimination in the gender wage gap in France and four other European countries using comprehensive linked employer-employee data. The role of bargaining and discrimination is analysed by focusing on systematic differences in wage-setting practices between men and women in the same firm through the estimation of gender-specific firm wage premia. The paper provides three key insights. First, bargaining and discrimination account for only a small part of the gender wage gap in France. Second, the component of the gender wage gap that can be attributed to bargaining and discrimination is higher in high-wage firms in all countries considered. Third, cross-country differences in the importance of bargaining and discrimination in the gender wage gap reflect both systematic differences in wage-setting practices within firms and imperfections in the product market that generate persistent rents.

English

Keywords: gender wage gap, firm wage premium, bargaining, rent-sharing
JEL: J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials; P52: Economic Systems / Comparative Economic Systems / Comparative Studies of Particular Economies; J16: Labor and Demographic Economics / Demographic Economics / Economics of Gender; Non-labor Discrimination
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