The gender reservation wage gap: Evidence from British Panel data

Our findings suggest the existence of a gender reservation wage gap. The presence of children, particularly pre-school age children, plays an important role in determining the proportion of this gap that can be explained by individual characteristics.

► Evidence is found of a gender reservation wage gap in the UK. ► Having pre-school age children (0-4), largely explains the gap. ► For those with pre-school children, the unexplained component is only 22%. ► The unexplained component of the differential for those with no children is 99%. ► It is likely perceived that discrimination influences reservation wages of females.