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Spatial Monopsony and the Gender Pay Gap

In: Monopsonistic Labour Markets and the Gender Pay Gap

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  • Boris Hirsch

    (Friedrich-Alexander-Universität Erlangen-Nürnberg)

Abstract

In the following, we shall apply the reasoning from the short-run model in Chapter 3 to investigate the gender pay gap. We will employ the simplest model possible by considering a situation of dyopsony with constant individual labour supply. Furthermore, we will exclusively focus on the solution under the Bertrand–Nash assumption, i.e., under HS conjectures. Since we will allow for heterogeneity among firms and workers, we will derive the solution within a more explicitly game-theoretic approach – in terms of finding a Nash equilibrium to the wage-setting game played by the two firms – as the short cut via conjectural variations used hitherto loses its analytical convenience. But before setting up the model, we shall first say something about the gender pay gap and the standard explanations brought forward to deal with this empirical regularity.

Suggested Citation

  • Boris Hirsch, 2010. "Spatial Monopsony and the Gender Pay Gap," Lecture Notes in Economics and Mathematical Systems, in: Monopsonistic Labour Markets and the Gender Pay Gap, chapter 0, pages 95-111, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-10409-1_5
    DOI: 10.1007/978-3-642-10409-1_5
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    Cited by:

    1. Xinxin Ma, 2022. "Internet use and gender wage gap: evidence from China," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-17, December.

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