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Tastes for Discrimination in Monopsonistic Labour Markets

Bernardo Fanfani

No 54, Working papers from Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino

Abstract: We study a model where wage differences between men and women arise from taste-based discrimination and monopsonistic mechanisms. We show how preferences against women affect heterogeneity in firms' pay policies in the context of an imperfect labour market, deriving a rigorous 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 differences in the Italian manufacturing sector showing that taste-based discrimination and preferences for workplaces providing more flexible schedules are two significant determinants of the gender wage gap.

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)
New Economics Papers: this item is included in nep-eur, nep-gen, nep-hrm, nep-lab and nep-ure
Date: 2018-05
References: View references in EconPapers View complete reference list from CitEc
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