The subway and the gender wage gap

Abstract

We estimate the impacts of accessing the subway network on the gender wage gap in China. The results suggest that the subway increases the wages of females relative to males. Heterogeneity estimations indicate that the subway has a more significant impact in regions with mature subway networks, as well as in suburban areas. The findings also demonstrate that the subway reduces the gender wage gap among low-skilled groups, married households, and households with fewer vehicles. Analysis of the mechanisms reveals that the effects are driven by the labour demand side, as subways boosts the entry of firms that are intensive in employing low-skilled females.