Gender Differences in Labor Supply to Monopsonistic Firms: An Empirical Analysis Using Linked Employer-Employee Data from Germany
AbstractThis paper investigates women's and men's labor supply to the firm within a structural approach based on a dynamic model of new monopsony. Using methods of survival analysis and a linked employer-employee dataset for Germany, we find that labor supply elasticities are small (0.9-2.4) and that women's labor supply to the firm is substantially less elastic than men's (which is the reverse of gender differences in labor supply usually found at the level of the market). One implication of these findings is that the gender pay gap could be the result of wage discrimination by profit-maximizing monopsonistic employers.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2443.
Length: 27 pages
Date of creation: Nov 2006
Date of revision:
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Other versions of this item:
- Boris Hirsch & Thorsten Schank & Claus Schnabel, 2006. "Gender Differences in Labor Supply to Monopsonistic Firms: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Working Papers 006, Bavarian Graduate Program in Economics (BGPE).
- Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2006. "Gender Differences in Labor Supply to Monopsonistic Firms : An Empirical Analysis Using Linked Employer-Employee Data from Germany," Discussion Papers 47, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-09 (All new papers)
- NEP-BEC-2006-12-09 (Business Economics)
- NEP-LAB-2006-12-09 (Labour Economics)
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