The Gender Wage Gap in Peru: Drivers, Evolution, and Heterogeneities

Despite the recent economic growth and gender equality improvement in educational attainment, important disparities remain Peruvian labour market. This article provides a comprehensive overview of wage gap evolution during 2007–2018 identifies key elements that explain its patterns. First, shows raw showed an upward trend between 2007–2011, ranging from 6% to 12%, remaining around top bound ever since. Second, using Oaxaca‐Blinder decomposition we find unexplained has remained virtually unchanged at 17% study period. Reductions endowment differences men women coupled with stagnant led slightly larger gaps over time. Moreover, suggests presence structural problems regarding social norms, stereotyping potential discrimination affects gap. Third, show both national regional level, are within lowest percentiles, they mostly have downward slope across earnings distribution. Finally, after computing region‐year smaller associated (a) higher GDP, (b) lower levels domestic physical violence against women, (c) percentages as household heads.