Tastes for discrimination in monopsonistic labour markets

Bernardo Fanfani

Labour Economics, 2022, vol. 75, issue C

Abstract: This paper presents a model where wage differences between men and women arise from taste-based discrimination, monopsonistic mechanisms and gender differences in compensating wage differentials. We show how preferences against women affect heterogeneity in firms’ pay policies in the context of an imperfect labour market with non-wage amenities, deriving a test for the presence of taste-based discrimination and of compensating wage differentials. These results inform an analysis of sex pay differences in the Italian manufacturing sector, which shows that preferences for workplaces providing more flexible schedules are a significant determinant of the gender wage gap. Taste-based discrimination mechanisms appear to be significant as well, but small in size.

Keywords: Gender wage gap; Taste-based discrimination; Monopsonistic discrimination; Compensating wage differentials; Firm wage policy; Matched employer-employee data (search for similar items in EconPapers)
JEL-codes: J00 J16 J31 J71 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Tastes for Discrimination in Monopsonistic Labour Markets (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:75:y:2022:i:c:s0927537121001421

DOI: 10.1016/j.labeco.2021.102107

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