Abstract

Discrimination, if it is inefficient, can be eliminated by competition. In most countries, it is also forbidden by law. This paper evaluates the influence of economic and legal factors on the portion of male-female wage differentials that is not explained by other worker characteristics and may be due to discrimination. We use a new international data set of suitable gender wage gap measures, constructed from the results of existing studies. Meta-analysis of the data shows that increased competition and adoption of international conventions concerning equal treatment laws both reduce gender wage gaps, while legislation that prevents women from performing strenuous or dangerous jobs tends to increase it. — Doris Weichselbaumer and Rudolf Winter-Ebmer

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