published in: Economic Policy, 2007, 22 (50), 235-287
This paper evaluates the impact of economic and legal variables on wage differentials
between men and women. Since Becker (1957) economists have argued that competitive
markets eliminate discrimination in the long run. On the other hand, practically all countries
have enacted some sort of law mandating equal treatment of men and women. This paper
uses a new international data set on the gender wage gap, which is constructed via a metaanalysis
of existing studies. The findings show that both increased competition and the
enactment of equal treatment laws reduce the gender wage gap.
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