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centregcs on 2010-12-22This study examines detailed data for faculty at a typical public research university in the United States between 1995 and 2004 to explore whether gender wage differentials can be explained by productivity differences. The level of detail - including the number of courses taught, enrollment, grant dollars, and number and impact of publications - largely eliminates the problem of unmeasured productivity, and the restriction to one firm eliminates unmeasured work conditions that confound investigations of wider labor markets. The authors find that direct productivity measures reduce the gender wage penalty to about 3 percent, only 1 percentage point lower than estimates from national studies of many institutions and with fewer productivity controls. The wage structure for women faculty differs markedly from the wage structure for men. Interpreted against the institutional features of wage setting for this population, the paper concludes that penalties for women arise at the department level.