event
Vilfredo Pareto Research Seminar
Tuesday
28
May
Little girl camera

Gender Disparities in the Welfare Effect of the Minimum Wage

Erika Deserrano, Bocconi University
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Geneva Graduate Institute, Maison de la paix, Room S4

As part of the Vilfredo Pareto Research Seminar series, the International Economics Department at the Geneva Graduate Institute is pleased to invite you to a public talk given by Erika Deserrano from Bocconi University

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Gender Disparities in the Welfare Effect of the Minimum Wage, joint with Decio Coviello and Nicola Persico


Abstract: 

We study how women and men working in the same minimum-wage supported job respond to, and benefit from, a minimum wage increase. Using administrative data from a major US retailer, we find that the welfare of women increases less with the minimum wage hike than that of men, even though both receive comparable pay raises. We show that this occurs because women exert more effort in response to the minimum wage increase, driven by their greater need for job retention due to less favorable outside options. This evidence points to a generalizable mechanism whereby disparities outside the firm account for welfare disparities in the impact of an important gender-neutral policy (i.e., the minimum wage) inside the firm.

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