Employer Responses to Family Leave Programs (with Rita Ginja and Arizo Karimi). 2023. [PDF IFAU]
American Economic Journal: Applied Economics, 15 (1): 107-135.
Human Capital Accumulation, Equilibrium Wage-Setting and the Life-Cycle Gender Pay Gap (with Noriko Amano-Patiño and Tatiana Baron). Cambridge Working Papers in Economics No. 2010.
Revise & resubmit, Quantitative Economics.
We study how turnover and human capital dynamics shape the life-cycle gender pay gap when employers are forward-looking and able to set gender-specific wage rates. In our equilibrium wage-posting model with learning-by-doing and fertility events, the life-cycle gap can be attributed to worker productivity, job search, employers’ endogenous wage-setting, and job productivity. Estimating the model on NLSY79 data, we find that although the high school and college gaps are driven by different forces, employers' wage-setting accounts for one-third of the gender gap in both groups. Neglecting interactions between turnover and human capital dynamics biases down the estimated role of turnover substantially.
This paper develops an equilibrium search model to study mechanisms underlying the lifecycle gender wage gap: workers’ skill accumulation, amenity preferences, and employers’ statistical discrimination in wage offers and hiring. Estimating the model on administrative employer-employee data from Finland, I find that statistical discrimination accounts for 44% of the gender wage gap in early career, whereas gender differences in labor force attachment explain most of the gap in late career. Policy counterfactuals highlight the importance of employers’ decisions on both wage and employment margins. Allocating parental leave more equally between men and women closes gender gaps both before and after having children.