Gender Wage Gap and its Dynamics in the Iranian Labor Market

The main aim of this paper is to compute the amount of real discrimination-induced gender wage gap in the Iranian labor market and to explain its dynamics in response to monetary policy and technology shocks. For this purpose, based on data and information of Iran's economy during the period 2008-2019, a Standard new Keynesian Dynamic Stochastic General Equilibrium (DSGE) model has been calibrated and solved. Based on the results, not only women's wage but also men's wage will be increased and the gender wage gap will be zero, if discrimination is eliminated and the equality in the working time is established between women and men. The results of solving the model showed that the long-run amount of the real gender wage gap attributed to discrimination in the Iranian labor market is approximately 18%. The results of simulating the impulse response functions of the model variables showed that the amount of the gender wage gap increases in the short run due to the occurrence of the expansionary monetary policy and the positive technology shocks