WAGE STRUCTURE AND GENDER EARNINGS DIFFERENTIALS - AN INTERNATIONAL COMPARISON

Using microdata to analyse the gender pay gap in ten industrialized na tions, we focus on the role of wage structure-the prices of labour mar ket skills-in influencing the gender gap. We find wage structure enorm ously important in explaining why the US gender gap is higher than tha t in most other countries. We conclude that the US gap would be simila r to that in Sweden and Australia (the countries with the smallest gap s) if the United States had their levels of wage inequality. This find ing reflects the larger penalty in the United States for those with lo w skill levels or employed in low-wage sectors.