Firm-Level Monopsony and the Gender Pay Gap
AbstractUsing a dynamic labor supply model and linked employer-employee data, I find evidence of substantial search frictions, with females facing a higher level of frictions than males. However, the majority of the gender gap in labor supply elasticities is driven by across firm sorting rather than within firm differences, a feature predicted in the search theory literature, but which has not been previously documented. The gender differential in supply elasticities leads to 3.3% lower earnings for women. Roughly 60% of the elasticity differential can be explained by marriage and children penalties faced by women but not men.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7343.
Length: 32 pages
Date of creation: Apr 2013
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-BEC-2013-04-27 (Business Economics)
- NEP-DEM-2013-04-27 (Demographic Economics)
- NEP-DGE-2013-04-27 (Dynamic General Equilibrium)
- NEP-LAB-2013-04-27 (Labour Economics)
- NEP-LMA-2013-04-27 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-04-27 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel Sullivan, 1989.
"Monopsony Power in the Market for Nurses,"
NBER Working Papers
3031, National Bureau of Economic Research, Inc.
- Charles R. Link & Russell F. Settle, 1979. "Labor Supply Responses of Married Professional Nurses: New Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 14(2), pages 256-266.
- Hirsch, B.T. & Schumacher, E.J., 1993.
"Monopsony Power and Relative Wages in the Labor Market for Nurses,"
1993_06_03, Department of Economics, Florida State University.
- Hirsch, Barry T. & Schumacher, Edward J., 1995. "Monopsony power and relative wages in the labor market for nurses," Journal of Health Economics, Elsevier, vol. 14(4), pages 443-476, October.
- Muehlemann, Samuel & Pfeifer, Harald & Walden, Günter & Wenzelmann, Felix & Wolter, Stefan C., 2010. "The financing of apprenticeship training in the light of labor market regulations," Labour Economics, Elsevier, vol. 17(5), pages 799-809, October.
- Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
- Bonin, Holger & Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006.
"Cross-sectional Earnings Risk and Occupational Sorting: The Role of Risk Attitudes,"
IZA Discussion Papers
1930, Institute for the Study of Labor (IZA).
- Bonin, Holger & Dohmen, Thomas & Falk, Armin & Huffman, David & Sunde, Uwe, 2007. "Cross-sectional earnings risk and occupational sorting: The role of risk attitudes," Labour Economics, Elsevier, vol. 14(6), pages 926-937, December.
- Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October.
- Adamache, Killard W. & Sloan, Frank A., 1982. "Unions and hospitals : Some unresolved issues," Journal of Health Economics, Elsevier, vol. 1(1), pages 81-108, May.
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, May.
- Depew, Briggs & Sorensen, Todd A., 2011. "Elasticity of Supply to the Firm and the Business Cycle," IZA Discussion Papers 5928, Institute for the Study of Labor (IZA).
- Webber, Douglas A., 2013.
"Firm Market Power and the Earnings Distribution,"
IZA Discussion Papers
7342, Institute for the Study of Labor (IZA).
- Martin Bronfenbrenner, 1956. "Potential monopsony in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 9(4), pages 577-588, July.
- Hirsch, Boris & Jahn, Elke J. & Schnabel, Claus, 2013.
"The cyclical behaviour of employers' monopsony power and workers' wages,"
89, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Hirsch, Boris & Jahn, Elke J. & Schnabel, Claus, 2013. "The Cyclical Behaviour of Employers' Monopsony Power and Workers' Wages," IZA Discussion Papers 7776, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.