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

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  • Boris Hirsch
  • Marion König
  • Joachim Möller

Abstract

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.

Suggested Citation

  • Boris Hirsch & Marion König & Joachim Möller, 2009. "Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap," Working Papers 083, Bavarian Graduate Program in Economics (BGPE).
  • Handle: RePEc:bav:wpaper:083_hirsch
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    3. Pohl, Anja & Sujata, Uwe & Wesling, Mirko & Zillmann, Manja, 2012. "Geschlechterspezifische Entwicklungen am sächsischen Arbeitsmarkt : Eine Betrachtung der Jahre 2007 bis 2011," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen 201204, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Christian Pfeifer, 2014. "The Gender Composition of Establishments' Workforces and Gender Gaps in Wages and Leadership Positions," Manchester School, University of Manchester, vol. 82, pages 69-81, December.
    5. Wydra-Somaggio, Gabriele & Höchst, Michael, 2018. "Regionaler Gender Pay Gap : Analyse der geschlechtsspezifischen Entgeltunterschiede im Saarland," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 201802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Bachmann, Ronald & Frings, Hanna, 2014. "Monopsony competition and the minimum wage: Evidence from Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100367, Verein für Socialpolitik / German Economic Association.
    7. Ronald Bachmann & Hanna Frings, 2017. "Monopsonistic competition, low-wage labour markets, and minimum wages – An empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5268-5286, November.
    8. Beblo, Miriam & Ohlert, Clemens & Wolf, Elke, 2011. "Logib-D und die Entgeltunterschiede zwischen Männern und Frauen in deutschen Betrieben : eine Abschätzung des politischen Handlungsfeldes (Logib-D and the gender pay gaps in German establishments : an," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 43-52.
    9. Almeida, Eloiza R.F. & Araújo, Veneziano & Gonçalves, Solange L., 2022. "Urban wage premium for women: evidence across the wage distribution," World Development, Elsevier, vol. 159(C).
    10. Leknes, Stefan & Rattsø, Jørn & Stokke, Hildegunn E., 2022. "Assortative labor matching, city size, and the education level of workers," Regional Science and Urban Economics, Elsevier, vol. 96(C).
    11. Altan Aldan, 2021. "Rising Female Labor Force Participation and Gender Wage Gap: Evidence From Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 865-884, June.
    12. Kaya Ezgi, 2021. "Gender wage gap across the distribution: What is the role of within- and between-firm effects?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-49, January.
    13. Hirsch, Boris & König, Marion & Möller, Joachim, 2009. "Regionale Unterschiede im "Gender Pay Gap": Lohnabstand von Frauen in der Stadt kleiner als auf dem Land (Regional differences in the gender pay gap: pay gap for women smaller in metropolita," IAB-Kurzbericht 200922, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Beblo, Miriam & Ohlert, Clemens & Wolf, Elke, 2011. "Logib-D und die Entgeltunterschiede zwischen Männern und Frauen in deutschen Betrieben : eine Abschätzung des politischen Handlungsfeldes (Logib-D and the gender pay gaps in German establishments : an," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 43-52.
    15. Rattsø, Jørn & Stokke, Hildegunn E., 2020. "Private-public wage gap and return to experience: Role of geography, gender and education," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    16. Melanie Jones & Ezgi Kaya, 2022. "The gender pay gap: what can we learn from Northern Ireland? [Women’s labour market participation in Northern Ireland: a re-examination of the ‘traditionalism’ argument]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 94-114.
    17. Daniel Felsenstein & Joseph Persky, 2011. "Gender and Job Chains in Local Economic Development," Economic Development Quarterly, , vol. 25(2), pages 172-181, May.
    18. Aleksandra Majchrowska & Paweł Strawiński, 2016. "Regional Differences in Gender Wage Gaps in Poland: New Estimates Based on Harmonized Data for Wages," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 115-141, June.
    19. Maik Hamjediers, 2021. "Can Regional Gender Ideologies Account for Variation of Gender Pay Gaps? The Case of Germany," Social Sciences, MDPI, vol. 10(9), pages 1-21, September.
    20. Jan Cadil & Martin Kopecky & Tomas Jurcik, 2022. "Job grade camouflage: When low gender pay gap does not mean equal pay," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 28-47, November.
    21. Wydra-Somaggio, Gabriele & Höchst, Michael, 2018. "Regionaler Gender Pay Gap : Analyse der geschlechtsspezifischen Entgeltunterschiede in Rheinland-Pfalz," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 201801, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    22. Ines P. Murillo Huertas & Raul Ramos & Hipolito Simon, 2017. "Regional Differences in the Gender Wage Gap in Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 981-1008, December.
    23. Fuchs, Michaela & Rossen, Anja & Weyh, Antje & Wydra-Somaggio, Gabriele, 2019. "Why do women earn more than men in some regions? : Explaining regional differences in the gender pay gap in Germany," IAB-Discussion Paper 201911, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    24. Michaela Fuchs & Anja Rossen & Antje Weyh & Gabriele Wydra‐Somaggio, 2021. "Where do women earn more than men? Explaining regional differences in the gender pay gap," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1065-1086, November.

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    More about this item

    Keywords

    Gender pay gap; urban-rural differences; matching; monopsonistic discrimination;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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