Affiliation:
1. Jiang Li was a Senior Research Analyst at Statistics Canada when the article was written. She is currently an Acting Senior Project Leader at Innovation, Science and Economic Development Canada. Benoit Dostie is a Professor in the Department of Applied Economics at HEC Montreal. Gaëlle Simard-Duplain is a Postdoctoral Researcher in the Centre for Innovative Data in Economics Research (CIDER) at the University of British Columbia
Abstract
Using data from the Canadian Employer-Employee Dynamics Database between 2001 and 2015, the authors examine the impact of firms’ hiring and pay-setting policies on the gender earnings gap in Canada. Consistent with the existing literature and following Card, Cardoso, and Kline (2016), findings show that firm-specific premiums explain nearly one-quarter of the 26.8% average earnings gap between female and male workers. On average, firms’ hiring practices, due to differences in the relative proportion of women hired at high-wage firms (known as sorting), and pay-setting policies, due to differences in pay by gender within similar firms, each explain approximately one-half of this firm effect. The compositional difference between the two channels varies substantially over a worker’s life cycle, by parental and marital status, and across provinces.
Funder
Social Sciences and Humanities Research Council of Canada
Subject
Management of Technology and Innovation,Organizational Behavior and Human Resource Management,Strategy and Management
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