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Monopsonistic Discrimination and the Gender-Wage Gap

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Author Info
Erling Barth
Harald Dale-Olsen

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Abstract

Models of worker flows have revitalized the idea of monopsony in the labor market. We apply such a model to gender differences. We argue that monopsonistic discrimination may be a substantial factor behind the overall gender wage gap, in particular with respect to differences arising between occupations and establishments. Using matched employer-employee data from Norway, we investigate the wage structure within and between establishments, and present novel evidence that the establishments' excess turnover of employees is sensitive to the wage premium of men, but not to the wage premium of women. Furthermore, we show that male turnover is more wage-elastic than female turnover.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7197.

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Date of creation: Jun 1999
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Handle: RePEc:nbr:nberwo:7197

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Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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.:
  1. Viscusi, W Kip, 1980. "Sex Differences in Worker Quitting," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 388-98, August. [Downloadable!] (restricted)
  2. Marc Van Audenrode & Jonathan S. Leonard, 1996. "Worker's Limited Liability, Turnover and Employment Contracts," Annales d'Economie et de Statistique, ADRES, issue 41-42, pages 04, Janvier-J. [Downloadable!]
  3. Kenneth Burdett & Dale T. Mortensen, 1989. "Equilibrium Wage Differentials and Employer Size," Discussion Papers 860, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  4. Goldin, Claudia, 1986. "Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 1-27, January. [Downloadable!] (restricted)
  5. Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S106-23, January. [Downloadable!] (restricted)
    Other versions:
  6. Hamermesh, Daniel S & Goldfarb, Robert S, 1970. "Manpower Programs in a Local Labor Market: A Theoretical Note," American Economic Review, American Economic Association, vol. 60(4), pages 706-09, September. [Downloadable!] (restricted)
  7. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-38, May. [Downloadable!] (restricted)
  8. Pissarides, C. & Wadsworth, J., 1988. "On-The-Job Search: Some Empirical Evidence," Papers 317, London School of Economics - Centre for Labour Economics.
  9. Nachum Sicherman, 1996. "Gender differences in departures from a large firm," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(3), pages 484-504, April.
  10. Salop, Steven C, 1979. "A Model of the Natural Rate of Unemployment," American Economic Review, American Economic Association, vol. 69(1), pages 117-25, March. [Downloadable!] (restricted)
  11. Groshen, Erica L, 1991. "Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 869-84, August. [Downloadable!] (restricted)
  12. Julia I. Lane & Alan G. Isaac & David W. Stevens, 1996. "Firm Heterogeneity and Worker Turnover," Labor and Demography 9602001, EconWPA. [Downloadable!]
  13. Kristen Keith & Abagail McWilliams, 1999. "The Returns to mobility and job search by gender," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(3), pages 460-477, April.
  14. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February. [Downloadable!] (restricted)
  15. Nachum Sicherman, 1996. "Gender Differences in Departure from a Large Firm," NBER Working Papers 4279, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Lynch, Lisa M, 1991. "The Role of Off-the-Job vs. On-the-Job Training for the Mobility of Women Workers," American Economic Review, American Economic Association, vol. 81(2), pages 151-56, May. [Downloadable!] (restricted)
  17. Francine D. Blau & Larry M. Kahn, 1981. "Race and sex differences in quits by young workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 34(4), pages 563-577, July.
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(explanations, 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.)

  1. Kuhn, Johan Moritz, 2007. "My Pay is Too Bad (I Quit). Your Pay is Too Good (You're Fired)," Working Papers 07-5, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  2. Jairo Baquero & Juan Carlos Guataqui & Lina Sarmiento, 2000. "Un marco analítico de la discriminación laboral. Teorias, modalidades y estudios para Colombia," BORRADORES DE INVESTIGACIÓN 003679, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]
  3. Kahn, Lawrence M., 2009. "Temporary Jobs and Job Search Effort in Europe," IZA Discussion Papers 4020, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Tilahun Temesgen, 2006. "Decomposing Gender Wage Differentials in Urban Ethiopia: Evidence from Linked Employer--Employee (LEE) Manufacturing Survey Data," Global Economic Review, Taylor and Francis Journals, vol. 35(1), pages 43-66, March. [Downloadable!] (restricted)
  5. Giovanni Sulis, 2007. "What Can Monopsony Explain of the Gender Wage Differential in Italy?," Working Paper CRENoS 200713, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  6. Carole Green & Marianne Ferber, 2005. "Do Detailed Work Histories Help to Explain Gender and Race/Ethnic Wage Differentials?," Review of Social Economy, Taylor and Francis Journals, vol. 63(1), pages 55-85, March. [Downloadable!] (restricted)
  7. Ilan Tojerow, 2008. "Industry Wage Differential, Rent Sharing and Gender in Belgium," Working Papers DULBEA 08-20.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  8. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2008. "Undocumented worker employment and firm survivability," Working Paper 2008-28, Federal Reserve Bank of Atlanta. [Downloadable!]
  9. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2008. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Working Papers 1111, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  10. Barth, Erling & Bratsberg, Bernt & Naylor, Robin A. & Raaum, Oddbjørn, 2002. "Explaining Variations in Wage Curves: Theory and Evidence," Memorandum 03/2002, Oslo University, Department of Economics. [Downloadable!]
  11. Michael R. Ransom & Ronald L. Oaxaca, 2008. "New Market Power Models and Sex Differences in Pay," Working Papers 1110, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  12. Arroyo, José Santiago & Figueroa, Víctor, 2007. "Determinantes del Acceso a un Empleo de Calidad en la región de Los Lagos, Chile: Análsis comparativo entre 1996 y 2003
    [Determinants of the Access to a Quality employment in the region of The La    ," MPRA Paper 15565, University Library of Munich, Germany. [Downloadable!]
  13. 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," IZA Discussion Papers 2443, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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