What is the Role of Firm-specific Pay Policies on the Gender Earnings Gap in Canada?

The wages of Canadian women have caught up substantially to those of their male counterparts, particularly from the 1970s to the early 1990s. However, the convergence in earnings by gender has slowed down since 1998. Researchers have struggled to explain this phenomenon with human capital alone (e.g., education and job tenure). Using data from the Canadian Employer–Employee Dynamics Database between 2001 and 2015, this study examines the impact of firms’ hiring and pay-setting policies on the gender earnings gap in Canada.