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Spatial Monopsony and the Gender Pay Gap

Boris Hirsch ()
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Boris Hirsch: Friedrich-Alexander-Universität Erlangen-Nürnberg

Chapter Chapter 5 in Monopsonistic Labour Markets and the Gender Pay Gap, 2010, pp 95-111 from Springer

Abstract: 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.

Keywords: Labour Supply; Travel Cost; Wage Differential; Male Worker; Wage Discrimination (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-10409-1_5

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DOI: 10.1007/978-3-642-10409-1_5

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