Resumen 

This paper assesses the total contribution of firms to the gender wage gap in Chile using a rich linked employer-employee data set for the 2005-2013 period. We estimate two-way fixed effects models that allow us to quantify and decompose the total contribution of firms to the pay gap into two channels: bargaining power and sorting effects. We also assess the effects of an Equal Pay law passed in 2009 on both channels. We find that firms' total contribution explains about half of the gender wage gap with sorting effects being most important for less-educated workers. We also find that women receive about 88% of the firm-specific premium earned by men. The gender wage gap slightly increases after the Equal Pay law, which does not seem to affect either bargaining power or sorting effects.