Abstract

Using microdata to analyze the gender pay gap in ten industrialized nations, this chapter focuses on the role of wage structure — the prices of labour market skills — in influencing the gender gap. It shows that the wage structure is extremely important in explaining why the US gender gap is higher than that in most other industrialized countries. It concludes that the US gap would be similar to that in Sweden and Australia (the countries with the smallest gaps) if the United States had their levels of wage inequality. This finding reflects the larger penalty in the United States for those with low skill levels or employed in low-wage sectors.

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