Equilibrium Job Search and Gender Wage Differentials in the UK

Abstract

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.