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Joan Robinson Meets Harold Hotelling : A Dyopsonistic Explanation of the Gender Pay Gap

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  • Hirsch, Boris

Abstract

This paper presents an alternative explanation of the gender pay gap resting on a simple Hotelling-style dyopsony model of the labor market. Since there are only two employers equally productive women and men have to commute and face travel cost to do so. We assume that a fraction of the women have higher travel cost, e.g., due to more domestic responsibilities. Employers exploit that women are less inclined to commute to their competitor and offer lower wages to women. Since women?s labor supply at the firm level is for this reason less wage-elastic, this model presents an explanation of wage discrimination in line with Robinson (1933). -- Das folgende Papier gibt eine alternative Erklärung geschlechtsspezifischer Lohndifferentiale im Rahmen eines einfachen Dyopsonmodells des Arbeitsmarktes im Stile von Hotelling. Da nur zwei Arbeitgeber existieren, sind gleichproduktive Frauen und Männer gezwungen, zu ihrem Arbeitgeber zu pendeln, wobei Reisekosten entstehen. Es wird angenommen, dass ein Teil der Frauen höhere Reisekosten aufweist, z.B. aufgrund häuslicher Verpflichtungen. Die Arbeitgeber machen sich zunutze, dass Frauen eine geringere Pendelneigung aufweisen und daher in geringerem Maße den Arbeitgeber wechseln, indem sie ihnen geringere Löhne anbieten. Da das Arbeitsangebot von Frauen auf Firmenebene aus diesem Grunde weniger lohnelastisch ist, stellt dies eine Erklärung von Lohndiskriminierung im Sinne von Robinson (1933) dar.

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Bibliographic Info

Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 51.

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Date of creation: 2007
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Handle: RePEc:zbw:faulre:51

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Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/
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Keywords: monopsony; gender; discrimination;

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References

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  1. Moritz, Michael & Gröger, Margit, 2006. "The German-Czech Border Region after the Fall of the Iron Curtain : Effects on the Labour Market," Discussion Papers 48, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  2. Wagner, Joachim & Schnabel, Claus & Schank, Thorsten & Addison, John T., 2005. "Do Works Councils Inhibit Investment?," Discussion Papers 32, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  3. M. Andrews & L. Gill & R. Upward, 2006. "High wage workers and low wage firms: Negative assortative matching or statistical artefact?," The School of Economics Discussion Paper Series 0615, Economics, The University of Manchester.
  4. Brixy, Udo & Kohaut, Susanne & Schnabel, Claus, 2005. "How fast do newly founded firms mature? : empirical analyses on job quality in start-ups," IAB Discussion Paper 200502, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Cited by:
  1. 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).
  2. Depew, Briggs & Norlander, Peter & Sorensen, Todd A., 2013. "Flight of the H-1B: Inter-Firm Mobility and Return Migration Patterns for Skilled Guest Workers," IZA Discussion Papers 7456, Institute for the Study of Labor (IZA).
  3. 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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