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The role of bargaining and discrimination in the gender wage gap in France: A cross-country perspective

Author

Listed:
  • Marco G. Palladino
  • Antoine Bertheau
  • Cesar Barreto
  • Dogan Gülümser
  • Alexander Hijzen
  • Anne Sophie Lassen
  • Balázs Muraközy
  • Oskar Nordström Skans

Abstract

This paper contributes to a better understanding of the role of bargaining and discrimination in the gender wage gap in France and four other European countries using comprehensive linked employer-employee data. The role of bargaining and discrimination is analysed by focusing on systematic differences in wage-setting practices between men and women in the same firm through the estimation of gender-specific firm wage premia. The paper provides three key insights. First, bargaining and discrimination account for only a small part of the gender wage gap in France. Second, the component of the gender wage gap that can be attributed to bargaining and discrimination is higher in high-wage firms in all countries considered. Third, cross-country differences in the importance of bargaining and discrimination in the gender wage gap reflect both systematic differences in wage-setting practices within firms and imperfections in the product market that generate persistent rents.

Suggested Citation

  • Marco G. Palladino & Antoine Bertheau & Cesar Barreto & Dogan Gülümser & Alexander Hijzen & Anne Sophie Lassen & Balázs Muraközy & Oskar Nordström Skans, 2024. "The role of bargaining and discrimination in the gender wage gap in France: A cross-country perspective," OECD Social, Employment and Migration Working Papers 315, OECD Publishing.
  • Handle: RePEc:oec:elsaab:315-en
    DOI: 10.1787/1fd68687-en
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    More about this item

    Keywords

    gender wage gap; firm wage premium; bargaining; rent-sharing;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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