nep-gen New Economics Papers
on Gender
Issue of 2022‒08‒08
two papers chosen by
Jan Sauermann
Institutet för Arbetsmarknads- och Utbildningspolitisk Utvärdering

  1. Can the Pay Transparency Directive close the gender pay gap? By Alcidi, Cinzia; Ounnas, Alexandre
  2. Gender gaps in frontier entrepreneurship? Evidence from 1901 Oklahoma land lottery winners By Jason Poulos

  1. By: Alcidi, Cinzia; Ounnas, Alexandre
    Abstract: Today, our thoughts go out to all women who have had to flee Ukraine to escape horror and to save their children, and to all those women who have remained behind to help defend their homeland. To those men and women who have the chance to live in (still) peaceful EU countries, we want to recall that gender equality remains a top priority. In the EU, major progress has been made in advancing women’s rights over the past 25 years but challenges still remain, especially on the labour market. The gender pay gap is definitely not yet closed. Despite progress over the past few years, women in the EU are still paid less than men for equal work of equal value. In 2018, the gap was on average 14 %, and it is likely to have increased during the pandemic. In 2019, President von der Leyen put gender equality among the six priorities of her new Commission. In March 2021 the Commission published a proposal for a Directive to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms. Is pay transparency important to close the gender pay gap? The short answer is yes. Over time women have been closing gaps relative to men in education, labour market participation, and attitude; areas which typically (used to) explain the gap. Yet pay differences persist. New research points to within-company dynamics as one of the most significant contributors to the pay gap. The directive proposes to address it through transparency and information sharing. This is expected to reduce the gender pay gap, even though the implementation, and in particular the operationalisation of the concept of equal work, will pose challenges to companies, and eventually can negatively weigh on the overall benefits.
    Date: 2022–03
  2. By: Jason Poulos
    Abstract: The paper investigates gender differences in entrepreneurship by exploiting a large-scale land lottery in Oklahoma at the turn of the 20$^{\text{th}}$ century. Lottery winners claimed land in the order in which their names were drawn, so the draw number is an approximate rank ordering of lottery wealth. This mechanism allows for the estimation of a dose-response function that relates each draw number to the expected outcome under each draw. I estimate dose-response functions on a linked dataset of lottery winners and land patent records, and find the probability of purchasing land from the government to be decreasing as a function of lottery wealth, which is evidence for the presence of liquidity constraints. I find female winners were more effective in leveraging lottery wealth to purchase additional land, as evidenced by significantly higher median dose-responses compared to those of male winners. For a sample of winners linked to the 1910 Census, I find that male winners have higher median dose-responses compared to female winners in terms of farm or home ownership. These results suggest that liquidity constraints may have been more binding for women entrepreneurs in the market economy.
    Date: 2022–06

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