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A Theory of Gender Wage Gap

Jellal, Mohamed and Nordman, Christophe (2009): A Theory of Gender Wage Gap.

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Abstract

In this paper, we introduce uncertainty of the labour productivity of women in a competitive model of wage determination. We demonstrate that more qualified women are then offered much lower wages than men at the equilibrium. This result is consistent with the glass ceiling hypothesis according to which there exist larger gender wage gaps at the upper tail of the wage distribution.

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