Moving apart: does worker residential mobility drive the gender pay gap? Insights from a large industrial firm

Abstract This study uses a 15-year panel dataset of employees from a major French industrial firm to examine the impact of intra-firm, job-induced residential mobility on the gender pay gap among executives. The key finding is that women are less likely to move than men, but this accounts for only a small part of the gender pay gap. The estimates derived from event-study analysis indicate that residential mobility is associated with a significant and persistent benefit for both men and women, while career trajectories appear largely unaffected. When relocation does occur, the cumulative associated premium over a 6-year period is only approximately 5 per cent higher for males than for females. Oaxaca-Blinder decompositions show that the overall gender pay gap is driven mainly by premiums, allowances, and bonuses. Within the broader category of compensations, those specifically linked to residential mobility account for a relatively modest share.