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New Market Power Models and Sex Differences in Pay

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  • Michael R Ransom
  • Ronald L. Oaxaca

Abstract

In the context of certain models, it is possible to infer the elasticity of labor supply to the firm from the elasticity of the quit rate with respect to the wage. We use this strategy to estimate the elasticity of labor supply for men and women workers at a chain of grocery stores, identifying separation elasticities from differences in wages and separation rates across different job titles within the firm. We estimate that women have lower elasticities, so a Robinson-style monopsony model can explain reasonably well the lower relative pay of women in the retail grocery industry. (c) 2010 by The University of Chicago.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 28 (2010)
Issue (Month): 2 (04)
Pages: 267-289

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Handle: RePEc:ucp:jlabec:v:28:y:2010:i:2:p:267-289

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Cited by:
  1. Rafael Lalive & Alois Stutzer, 2010. "Approval of equal rights and gender differences in well-being," Journal of Population Economics, Springer, vol. 23(3), pages 933-962, June.
  2. Kahn, Lawrence M., 2012. "Temporary jobs and job search effort in Europe," Labour Economics, Elsevier, vol. 19(1), pages 113-128.
  3. Domenico Tabasso, 2011. "Temporary Contract and Monopsony Power in the UK Labour Market," Melbourne Institute Working Paper Series wp2011n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  4. Jahn, Elke J. & Pozzoli, Dario, 2013. "The pay gap of temporary agency workers — Does the temp sector experience pay off?," Labour Economics, Elsevier, vol. 24(C), pages 48-57.
  5. Samuel Muehlemann & Paul Ryan & Stefan C. Wolter, 2011. "Monopsony power, pay structure and training," Economics of Education Working Paper Series 0099, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Hirsch, Boris & Schnabel, Claus, 2010. "Women move differently: Job separations and gender," IWQW Discussion Paper Series 06/2010, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  7. Torberg Falch, 2013. "Wages and Recruitment: Evidence from External Wage Changes," CESifo Working Paper Series 4078, CESifo Group Munich.
  8. Ashenfelter, Orley & Farber, Henry & Ransom, Michael R., 2010. "Modern Models of Monopsony in Labor Markets: A Brief Survey," IZA Discussion Papers 4915, Institute for the Study of Labor (IZA).
  9. Depew, Briggs & Sørensen, Todd A., 2013. "The elasticity of labor supply to the firm over the business cycle," Labour Economics, Elsevier, vol. 24(C), pages 196-204.

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