Viewpoint: Male‐female wage differentials: how can that be?

Abstract

Abstract. The paper outlines the main empirical procedures that are used to document the male‐female wage differential and the extent to which it reflects discrimination. It then discusses the evidence on male‐female wage differentials – their existence, the extent to which they reflect discrimination, their changes over time and the factors that influence the gap. Particular attention is paid to more recent studies that control for a wider range of conventionally unobserved factors. Theoretical perspectives are then outlined, focusing on the issue of how discriminatory wage differentials can survive given the forces of competition. The impacts of policy initiatives are also discussed.

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