The Gender Pay Gap: Micro Sources and Macro Consequences
Iacopo Morchio, Christian Moser
American Economic Review · 2026 · Volume 116 · Issue 5
Abstract
Using linked employer-employee data from Brazil, we document a significant gender pay gap, which is largely attributed to women working at lower-paying employers. To interpret this fact, we develop an equilibrium search model with endogenous firm pay, amenities, and hiring. We provide a constructive proof of identification of all model parameters. The estimated model suggests that amenities are important for both men and women, and that compensating differentials account for half of the gender pay gap. Equal treatment policies partly close gender gaps but are not output- or welfare-improving.
Keywords
Employment, Unemployment, Wages, Intergenerational Income Distribution, Aggregate Human Capital, Aggregate Labor Productivity, Economics of Gender, Non-labor Discrimination, Labor Demand, Wage Level and Structure, Wage Differentials, Nonwage Labor Costs and Benefits, Retirement Plans, Private Pensions, Personnel Economics: Firm Employment Decisions, Promotions, Economic Development: Human Resources, Human Development, Income Distribution, Migration
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