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Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap

  • Boris Hirsch
  • Marion König
  • Joachim Möller

In this paper, we investigate regional di erences in the gender pay gap both theoretically and empirically. Within a spatial oligopsony model, we show that more densely populated labour markets are more competitive and constrain employers' ability to discriminate against women. Utilising a large administrative data set for western Germany and a fexible semi-parametric propensity score matching approach, we and that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly ten percentage points remained surprisingly constant over the entire observation period of thirty years.

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File URL: http://www.bgpe.de/texte/DP/083_hirsch.pdf
File Function: First version, 2009
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Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 083.

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Length: 28 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:bav:wpaper:083_hirsch
Contact details of provider: Web page: http://www.bgpe.de/

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  1. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
  2. Joni Hersch & Leslie S. Stratton, 1997. "Housework, Fixed Effects, and Wages of Married Workers," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 285-307.
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  8. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
  9. Dan A. Black & Amelia M. Haviland & Seth G. Sanders & Lowell J. Taylor, 2008. "Gender Wage Disparities among the Highly Educated," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 630-659.
  10. Schlicht, Ekkehart, 1982. "A Robinsonian Approach to Discrimination," Munich Reprints in Economics 3351, University of Munich, Department of Economics.
  11. Bowlus, Audra J, 1997. "A Search Interpretation of Male-Female Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 625-57, October.
  12. Fitzenberger, Bernd & Osikominu, Aderonke & Völter, Robert, 2005. "Imputation rules to improve the education variable in the IAB employment subsample," FDZ Methodenreport 200503_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Boris Hirsch, 2009. "The Gender Pay Gap Under Duopsony: Joan Robinson Meets Harold Hotelling," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(5), pages 543-558, November.
  14. Paulo R.A. Loureiro & Francisco Galrão Carneiro & Adolfo Sachsida, 2004. "Race and gender discrimination in the labor market: an urban and rural sector analysis for Brazil," Journal of Economic Studies, Emerald Group Publishing, vol. 31(2), pages 129-143, May.
  15. Capozza, Dennis R & Van Order, Robert, 1978. "A Generalized Model of Spatial Competition," American Economic Review, American Economic Association, vol. 68(5), pages 896-908, December.
  16. Robinson, Helen, 2003. "Regional evidence on the effect of the National Minimum Wage on the gender pay gap," Royal Economic Society Annual Conference 2003 176, Royal Economic Society.
  17. Michael Bradfield, 1990. "Long-run Equilibrium under Pure Monopsony," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 700-704, August.
  18. Anne Busch & Elke Holst, 2008. ""Gender Pay Gap": in Großstädten geringer als auf dem Land," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 75(33), pages 462-468.
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