Gender wage differentials, job search, and part-time employment in the UK

Abstract

Gender wage differentials in the UK are examined using a general equilibrium search model. This framework permits an assessment of male-female differences in labour market behaviour on gender wage differentials. The model captures worker decisions leading to transitions between labour market states and jobs, and firm responses to such transitions via wage offers. Special attention is paid to part-time workers, who have substantially less labour market attachment than full-time workers. The results indicate labour market behaviour differences play a role in determining gender wage differentials within education levels. The importance of these differences varies by education level and hours of work. These findings have implications for policies aimed at reducing gender wage differentials, and for researchers assessing the causes of gender wage differentials in situations where a large fraction of women work part-time.