The gender gap: Using the lab as a window on the market

Labour market studies reveal that women’s earnings are lower than men’s, even after correcting for job characteristics and worker characteristics. Although that difference has diminished over the last 30 years (e.g. Bergmann 1996: 37), a significant difference in earnings is found in virtually every study that has been conducted. In a meta-analysis, Weichselbaumer and Winter-Ebner (2005) report that recent studies show a total wage gap of around 30 per cent and residual wage gaps averaging just under 20 per cent. In this chapter I selectively review evidence from experimental studies with an eye to evidence that might suggest possible explanations for the wage gap.1