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Tastes for Discrimination in Monopsonistic Labour Markets

Bernardo Fanfani

No def094, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This paper presents a model where wage di erences between men and women arise from taste-based discrimination and monopsonistic mechanisms. We show how preferences against women a ect heterogeneity in firms' pay policies in the context of an imperfect labour market, deriving a test for the presence of taste-based discrimination and of other firm-level mechanisms driving the gender wage gap, in particular compensating wage differentials. These results inform an analysis of sex pay di erences in the Italian manufacturing sector showing that preferences for workplaces providing more exible schedules are a significant determinant of the gender wage gap. Taste-based discrimi- nation mechanisms appear to be significant as well, but small in size.

Keywords: Gender Wage Gap; Taste-Based Discrimination; Monopsonistic Discrimination; CompensatingWage Di erentials; FirmWage Policy; Matched Employer-Employee Data. (search for similar items in EconPapers)
JEL-codes: J00 J16 J31 J71 (search for similar items in EconPapers)
Pages: 44
Date: 2020-10
New Economics Papers: this item is included in nep-eur, nep-gen and nep-lab
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Related works:
Journal Article: Tastes for discrimination in monopsonistic labour markets (2022) Downloads
Working Paper: Tastes for Discrimination in Monopsonistic Labour Markets (2018) Downloads
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