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Do women benefit from competitive markets? Product market competition and the gender pay gap in Germany

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Author Info

  • Boris Hirsch

    ()
    (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

  • Michael Oberfichtner

    ()
    (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

  • Claus Schnabel

    ()
    (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

Abstract

Using a large linked employer–employee dataset for Germany with a direct plant-level measure of product market competition and controlling for job-cell fixed effects, we investigate whether relative wages of women benefit from strong competition. We find that the unexplained gender pay gap is about 2.4 log points lower in West German plants that face strong product market competition than in those experiencing weak competition, whereas no such link shows up for East Germany.

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File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P155.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 32 (2012)
Issue (Month): 2 ()
Pages: 1618-1624

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Handle: RePEc:ebl:ecbull:eb-12-00273

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Keywords: Gender pay gap; discrimination; product market competition; Germany;

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  1. Weichselbaumer, Doris & Winter-Ebmer, Rudolf & Zweimüller, Martina, 2007. "Market Orientation and Gender Wage Gaps: An International Study," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6388, C.E.P.R. Discussion Papers.
  2. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential," IZA Discussion Papers 822, Institute for the Study of Labor (IZA).
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