Alexandra Roulet is an Assistant Professor of Economics at INSEAD and a CEPR Research Affiliate. She presents on a paper that is joint with Marco Palladino and Mark Stabile.
Evidence across many jurisdictions suggests that firm premia contribute meaningfully to the gender wage gap and more so through sorting of women into lower paying firms than through within firm gender difference in pay premia. We build on this evidence using a cluster-based approach which allows us to relax sample restrictions, to use repeated 2 years panels to examine how the contribution of firms to the gender wage gap has changed over time, and to explore whether there are complementarities between worker types and firm effects and how these differ by gender. We show that lifting the dual connected set restriction reveals a larger contribution of firms to the gender wage gap, and in particular, a higher within firm component. Further, the gender gap in firm pay premia remained fairly constant between 1995 and 2015 (as did the decomposition of these premia) but represents an increasing share of the overall gender wage gap over time. Finally, we find limited evidence of complementarities for both men and women.