PERSISTENCE OF THE GENDER WAGE GAP: THE ROLE OF THE INTERGENERATIONAL TRANSMISSION OF PREFERENCES

This paper provides an explanation of the evolution and persistence of the gender wage gap due to differences in training within the framework of an overlapping generations model with intergenerational transmission of preferences. "Job-priority" and "family-priority" preferences are considered. Firms' policy and the distribution of women's preferences influence each other and are endogenously and simultaneously determined in the long run. The results show though the gender gap in training will diminish, it will also will persist over time. This is because both types of women's preferences coexist at the steady state due to the socialization effort of parents to preserve their own cultural values.