The Role of Bargaining and Discrimination in the Gender Wage Gap in France: A Cross-country Perspective

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

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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.
Original languageEnglish
Place of PublicationParis
PublisherOrganisation for Economic Cooporation and Development, OECD
Number of pages34
DOIs
Publication statusPublished - 2024
SeriesOECD Social, Employment and Migration Working Papers
Number315

Keywords

  • Gender wage gap
  • Firm wage premium
  • Bargaining
  • Rent-sharing

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