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Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap

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  • Hirsch, Boris

    ()
    (University of Erlangen-Nuremberg)

  • König, Marion

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Möller, Joachim

    ()
    (Institute for Employment Research (IAB), Nuremberg)

Abstract

In this paper, we investigate regional differences in the gender pay gap both theoretically and empirically. Within a spatial oligopsony model, we show that more densely populated labour markets are more competitive and constrain employers' ability to discriminate against women. Utilising a large administrative data set for western Germany and a flexible semi-parametric propensity score matching approach, we find that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly ten percentage points remained surprisingly constant over the entire observation period of thirty years.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4231.

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Length: 30 pages
Date of creation: Jun 2009
Date of revision:
Publication status: published in: Scottish Journal of Political Economy, 2013, 60 (4), 412-439
Handle: RePEc:iza:izadps:dp4231

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Keywords: gender pay gap; urban-rural differences; matching; monopsonistic discrimination;

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References

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  1. Schlicht, Ekkehart, 1982. "A Robinsonian Approach to Discrimination," Munich Reprints in Economics, University of Munich, Department of Economics 3351, University of Munich, Department of Economics.
  2. Boris Hirsch, 2009. "The Gender Pay Gap Under Duopsony: Joan Robinson Meets Harold Hotelling," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 56(5), pages 543-558, November.
  3. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
  4. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
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  6. Robinson, Helen, 2003. "Regional evidence on the effect of the National Minimum Wage on the gender pay gap," Royal Economic Society Annual Conference 2003, Royal Economic Society 176, Royal Economic Society.
  7. Dragana Djurdjevic & Sergiy Radyakin, 2007. "Decomposition of the Gender Wage Gap Using Matching: An Application for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), Swiss Society of Economics and Statistics (SSES), vol. 143(IV), pages 365-396, December.
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Cited by:
  1. Julie L. Hotchkiss & Menbere Shiferaw, 2010. "Decomposing the education wage gap: everything but the kitchen sink," Working Paper, Federal Reserve Bank of Atlanta 2010-12, Federal Reserve Bank of Atlanta.
  2. Beblo, Miriam & Ohlert, Clemens & Wolf, Elke, 2011. "Logib-D und die Entgeltunterschiede zwischen Männern und Frauen in deutschen Betrieben : eine Abschätzung des politischen Handlungsfeldes (Logib-D and the gender pay gaps in German establishments : ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 43-52.

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