Observational analysis shows financial incentives improved wages for women in Lithuania, suggesting effective mobility interventions for income equality.
The gender pay gap remains a persistent issue in labor markets. This paper examines whether financial incentives that subsidize commuting costs can help reduce the gap. Using propensity score matching on Lithuanian administrative data, I find that women who participated in an active labor market policy aimed at supporting mobility earned higher wages than comparable non-participants. Additionally, the wage effect of the policy was 40% greater for women than for men, suggesting its potential to reduce the gap. The effect was especially pronounced among women with young children, where the wage gain was twice as high as for those without.
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Titas Budreika (2025) studied this question.
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