Household Decisions and the Gender Gap in Job Satisfaction

Abstract

This paper offers a novel theoretical explanation for the gender gap in job satisfaction, 
where women typically report higher job satisfaction than men. We argue that rational 
family decisions can result in divergent job choices for women and men, leading to 
increased job satisfaction but lower earnings for women, even when their preferences and 
expectations align with those of men. We develop this explanation within a theoretical 
model of collective household decision-making that considers relative earnings disparities 
within households. We provide empirical evidence supporting our model’s predictions 
utilizing survey and administrative data from Canada.

Household Decisions and the Gender Gap in Job SatisfactionExternal link