This paper follows the methodology proposed by Card et al. (2016) in order to investigate
the role of firms in the Portuguese gender wage gap. It was found that firm components
account, on average, for 9.8% of the gender pay gap and that its relevance increases for older
and less educated workers. The sorting channel is the main driver of these components and
the bargaining effect was proven to be sensitive to the normalization strategy. Additionally,
it was found that, on average, women are 1.6 percentage points less likely to move to
higher-paying firms than their male counterparts
