Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer‐Employee Data from Germany
- 1 April 2010
- journal article
- Published by University of Chicago Press in Journal of Labor Economics
- Vol. 28 (2), 291-330
- https://doi.org/10.1086/651208
Abstract
This article investigates women's and men's labor supply to the firm within a semistructural approach based on a dynamic model of new monopsony. Using methods of survival analysis and a large linked employer-employee data set for Germany, we find that labor supply elasticities are small (1.9-3.7) and that women's labor supply to the firm is less elastic than men's (which is the reverse of gender differences in labor supply usually found at the level of the market). Our results imply that at least one-third of the gender pay gap might be wage discrimination by profit-maximizing monopsonistic employers. (c) 2010 by The University of Chicago.Keywords
Other Versions
This publication has 20 references indexed in Scilit:
- New Market Power Models and Sex Differences in PayJournal of Labor Economics, 2010
- THE GENDER PAY GAP UNDER DUOPSONY: JOAN ROBINSON MEETS HAROLD HOTELLINGScottish Journal of Political Economy, 2009
- Training Systems and Labor Mobility: A Comparison between Germany and Sweden*The Scandinavian Journal of Economics, 2003
- Equilibrium Wage Dispersion with Worker and Employer HeterogeneityEconometrica, 2002
- Discrimination and Skill Differences in an Equilibrium Search Model*International Economic Review, 2002
- Is job stability declining in Germany? Evidence from count data modelsApplied Economics, 1998
- An Empirical Equilibrium Search Model of the Labor MarketEconometrica, 1998
- Wage Differentials, Employer Size, and UnemploymentInternational Economic Review, 1998
- An empirical analysis of the spatial elasticity of labor supplyPapers in Regional Science, 1977
- A SPATIAL THEORY OF SEX DISCRIMINATION*Journal of Regional Science, 1977