Bargaining power and gender pay gap: the Chilean case

Authors

  • Gabriel Cruz Pontificia Universidad Católica de Chile

Abstract

Through the methodology proposed by Carl, Cardoso and Kline (2013), which uses a two fixed effects model employee and firm, this article examines the effect of bargaining power of men and women on the gender pay gap. Model for calculating statistical techniques recently raised by Ouzad (2008) based on Abowd, Creecy, Kramarz (2002) was used. For this database Seguro de Cesantía chileno, which has a wealth of information connected employee-signature was used, which allows to follow the monthly mobility of individuals in various firms between 2002 and 2013. The results for the Chilean case are that the gender pay gap is 27.4% and the bargaining power accounts for about 27% of the wage gap, overcoming found in Portugal (Card, Cardoso and Kline, 2013). In addition, it is found that women increase their wages by about 15% less on average than men to change their signature. All these results are compared and discussed with those found in Portugal in studying Card, Cardoso and Kline (2013).

Keywords:

Gender wage gap, bargaining power, gender equality