The gender wage gap and what firms have to do with it

Abstract

"Early explanations for gender wage gaps focused on human capital or career choices. This column uses data from the US and ten European countries to examine the role of firms. Across all countries considered, firms account for between 10% and 30% of the gender wage gap, mainly reflecting women being more likely to work at firms that pay less to all employees, irrespective of their skills. While men move to higher-paying firms as they advance in their career, women tend to stay behind. Women also tend to sort into low-wage firms in return for more flexibility in working time. The findings suggests that there is a case for complementing family policies with policies focused on firms." (Author's abstract, IAB-Doku) ((en))

Cite article

Palladino, M., Bertheau, A., Hijzen, A., Kunze, A., Barreto, C., Gülümser, D., Lachowska, M., Lassen, A., Lattanzio, S., Lochner, B., Lombardi, S., Meekes, J., Muraközy, B. & Nordström Skans, O. (2026): The gender wage gap and what firms have to do with it. (VoxEU columns / Centre for Economic Policy Research), London.