Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2026-10-05
Number: 26-077/VI
Author-Name: Christine Braun
Author-Workplace-Name: University of Warwick
Author-Name: Ana Figueiredo
Author-Workplace-Name: Vrije Universiteit Amsterdam
Title: Representation over Rents: Labor Market Beliefs and the Gender Wage Gap
Abstract: We study how labor market beliefs shape the gender wage gap in an equilibrium search model with endogenous wage setting and hiring, in which workers hold subjective expectations about wage offers, job arrival rates, and separation risk. Using data from the Survey of Consumer Expectations to estimate the model, we find that gender differences in beliefs account for 25% of the gender wage gap. Correcting these beliefs partly narrows the gap but is not welfare-improving, as it
reduces lifetime earnings for both men and women. In contrast, equalizing labor market fundamentals substantially reduces the wage gap while increasing women's lifetime earnings.
Classification-JEL: J16, J31 ,J64
Keywords: Gender wage gap; Labor market beliefs;  Job search
File-URL: https://papers.tinbergen.nl/26077.pdf
File-Format: application/pdf
File-Size: 929.761 bytes
Handle: RePEc:tin:wpaper:20260077