Abstract. Coming soon.

Abstract: A growing literature suggests that outside job offers are an important component of on-the-job wage growth. Such outside offers could contribute to the gender wage gap due to a differential arrival rate of (relevant) job opportunities and/or because of gender differences in negotiation. In this paper, we shed light on this source of gender wage inequality by empirically studying male and female wage and job mobility responses to the arrival of outside job opportunities that arise via family networks. We show in Swedish register data that such opportunities are associated with higher wages for men but not for women. However, women have higher job mobility in response to expansions in connected firms- particularly when those offer a shorter commute compared to the current employer. Together, our results are consistent with women being less likely to renegotiate in response to the arrival of job offers. The paper thus confirms in a broader setting that gender negotiation differences is an economically meaningful source of the remaining gender pay gap. 

Abstract. We use matched employer-employee datasets from the US and Europe to document the contribution of firm-specific pay premiums to the gender wage gap. We exploit longitudinal hourly wage data for all countries and link them to firm financial data for European countries. Our main findings are as follows: (1) The impact of firm-specific wage premia on the gender hourly wage gap varies considerably across countries. It accounts for two-thirds of the hourly gender wage gap in the US but less than one-third in Finland, France, and Sweden. The contribution of firm-specific wage premia in Hungary, Portugal, and Norway is in the middle; (2) The sorting (women working in lower-paying firms) and bargaining (women earning less in similar firms) components of the firm effects widely differ across countries. The bargaining component is the dominant factor in the US, Hungary and Denmark, countries where a higher share of wages are set at the firm level; (3) Decomposing the firm effects by worker characteristics leads to some similarities across countries. The sorting component increases over the life cycle, while the bargaining component increases over the wage and wage premia distributions; (4) When including public sector jobs, the role of firm effects gap becomes much higher, driven almost exclusively by an increased sorting component; (5) The differential productivity pass-through between men and women is the highest in countries where firms have more wage-setting power.

Abstract. Coming soon.