Marcio Cruz, Emmanuel Milet, Marcelo Olarreaga, 18 August 2017

The reduction in the cost of exporting offered by international transactions over the internet helps small firms in developing countries reach consumers all over the world. This column argues that this bias in favour of small firms has an impact on labour markets, as small firms tend to hire unskilled workers disproportionately. By levelling the playing field between small and large firms in terms of access to international markets, online trade can contribute to reducing wage and, ultimately, income inequality.

Hiromi Hara, 19 July 2017

Although the gender wage gap in Japan has been decreasing over the last 15 years, it remains large. This column shows that both the ‘glass ceiling’ and the ‘sticky floor’ exist in the Japanese labour market. The country’s human resource management system and a culture which rewards those who are willing to work outside of regular hours are to blame.

Amanda Goodall, 22 May 2017

Do women ask for a pay rise or a promotion? In this video, Amanda Goodall addresses the question, and also considers how part-time workers are affected. This video was recorded at the Royal Economic Society Annual Conference held in Bristol in April 2017.

Maria Cubel, 08 January 2017

Recent explanations for the persistence of both the gender wage gap and the under-representation of women in top jobs have focused on behavioural aspects, in particular on differences in the responses of men and women to competition. This column suggests that it may not be competition itself that affects women, but the gender of their opponent. Analysis of data from thousands of expert chess games shows that women are less likely to win compared with men of the same ability, and that this is driven by women making more errors specifically when playing against men.

Luca Flabbi, Mario Macis, Andrea Moro, Fabiano Schivardi, 24 April 2015

Despite the convergence between men and women in many labour market indicators, women are still vastly underrepresented at the boardroom level. Using Italian data, this column presents new evidence on the impact of having a female CEO on the distribution of wages for male and female workers within firms. Female CEOs are shown to reduce the gender wage gap at the top of the wage distribution but widen it at the bottom. The authors also show that firms with female CEOs perform better, the higher the fraction of women in the firm’s workforce.

Holger Mueller, Paige Ouimet, Elena Simintzi, 12 March 2015

Rising wage inequality has received attention from academics and policymakers alike. This column describes new evidence for determinants of the ‘skill premium’, i.e., the wage difference between high and low-skilled workers. The findings indicate that skill premia are larger at larger firms. At the same time, larger firms have grown substantially. Therefore, the growth of larger firms in the economy could partially explain the growing wage inequality. 

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