Firm-Level Monopsony and the Gender Pay Gap

Douglas Webber

No 7343, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using a dynamic labor supply model and linked employer-employee data, I find evidence of substantial search frictions, with females facing a higher level of frictions than males. However, the majority of the gender gap in labor supply elasticities is driven by across firm sorting rather than within firm differences, a feature predicted in the search theory literature, but which has not been previously documented. The gender differential in supply elasticities leads to 3.3% lower earnings for women. Roughly 60% of the elasticity differential can be explained by marriage and children penalties faced by women but not men.

Keywords: discrimination; monopsony (search for similar items in EconPapers)
JEL-codes: J42 J71 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-04
New Economics Papers: this item is included in nep-bec, nep-dem, nep-dge, nep-lab, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - published in: Industrial Relations, 2016, 55(2), 323-345.

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Journal Article: Firm-Level Monopsony and the Gender Pay Gap (2016)
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