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Firm Pay Policies and the Gender Earnings Gap: The Mediating Role of Marital and Family Status.


ABSTRACT: Using data from the Canadian Employer-Employee Dynamics Database between 2001 and 2015, the authors examine the impact of firms' hiring and pay-setting policies on the gender earnings gap in Canada. Consistent with the existing literature and following Card, Cardoso, and Kline (2016), findings show that firm-specific premiums explain nearly one-quarter of the 26.8% average earnings gap between female and male workers. On average, firms' hiring practices, due to differences in the relative proportion of women hired at high-wage firms (known as sorting), and pay-setting policies, due to differences in pay by gender within similar firms, each explain approximately one-half of this firm effect. The compositional difference between the two channels varies substantially over a worker's life cycle, by parental and marital status, and across provinces.

SUBMITTER: Li J 

PROVIDER: S-EPMC9693727 | biostudies-literature | 2023 Jan

REPOSITORIES: biostudies-literature

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Firm Pay Policies and the Gender Earnings Gap: The Mediating Role of Marital and Family Status.

Li Jiang J   Dostie Benoit B   Simard-Duplain Gaëlle G  

Industrial & labor relations review 20220430 1


Using data from the Canadian Employer-Employee Dynamics Database between 2001 and 2015, the authors examine the impact of firms' hiring and pay-setting policies on the gender earnings gap in Canada. Consistent with the existing literature and following Card, Cardoso, and Kline (2016), findings show that firm-specific premiums explain nearly one-quarter of the 26.8% average earnings gap between female and male workers. On average, firms' hiring practices, due to differences in the relative propor  ...[more]

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