Equilibrium Job Search and Gender Wage Differentials in the UK Audra J Bowlus (University of Western Ontario)
Louise Grogan (Candian International Labour Network, McMaster University)June 2001
The role of gender differences in labour market behaviour in determining the UK male-female wage differential is examined using the British Household Panel Study and the general equilibrium job search framework of Bowlus (1997). We find that search behaviour explains 30-35% of the gender wage differential. This is similar to US findings. Despite more generous maternity policies, females in the UK are more likely to exit to non-participation. Finally, we find the level of search friction is lower in the UK than in the US due to low job destruction rates in the UK.
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