Gender and Economic Outcomes: the Role of Wage Structure

Abstract. Empirical research on gender pay gaps has traditionally focused on the role of gender-specific factors, particularly gender differences in qualifications and differences in the treatment of otherwise equally qualified male and female workers (i.e. labor market discrimination). An innovative feature of recent research is to focus on the role of wage structure — the array of prices set for various labor market skills — in influencing the gender gap. In this paper, I consider the determinants of gender differences in pay and summarize empirical evidence on the importance of various factors in explaining gender pay gaps, highlighting the role of wage structure. To illustrate how it can impact the gender gap, I summarize my research on international differences in male-female wage differentials, as well as preliminary findings on trends over time in gender differentials in the United States.