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Do women benefit from competitive markets? Product market competition and the gender pay gap in Germany

Author

Listed:
  • Boris Hirsch

    () (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

  • Michael Oberfichtner

    () (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

  • Claus Schnabel

    () (University of Erlangen–Nürnberg, Chair of Labour and Regional Economics)

Abstract

Using a large linked employer–employee dataset for Germany with a direct plant-level measure of product market competition and controlling for job-cell fixed effects, we investigate whether relative wages of women benefit from strong competition. We find that the unexplained gender pay gap is about 2.4 log points lower in West German plants that face strong product market competition than in those experiencing weak competition, whereas no such link shows up for East Germany.

Suggested Citation

  • Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2012. "Do women benefit from competitive markets? Product market competition and the gender pay gap in Germany," Economics Bulletin, AccessEcon, vol. 32(2), pages 1618-1624.
  • Handle: RePEc:ebl:ecbull:eb-12-00273
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P155.pdf
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    References listed on IDEAS

    as
    1. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential," IZA Discussion Papers 822, Institute for the Study of Labor (IZA).
    2. Martina Zweimüller & Rudolf Winter-Ebmer & Doris Weichselbaumer, 2008. "Market Orientation and Gender Wage Gaps: an International Study," Kyklos, Wiley Blackwell, vol. 61(4), pages 615-635, November.
    3. Anja Heinze & Elke Wolf, 2010. "The intra-firm gender wage gap: a new view on wage differentials based on linked employer–employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 851-879, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2014. "The levelling effect of product market competition on gender wage discrimination," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-14, December.

    More about this item

    Keywords

    Gender pay gap; discrimination; product market competition; Germany;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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