Firm-Level Monopsony and the Gender Pay Gap

This study uses linked employer–employee data to estimate firm‐by‐gender specific labor supply elasticities. Using a dynamic model of labor supply, I find evidence that females face a greater degree of search frictions than males. However, the majority of the gender gap in labor supply elasticities...

Full description

Saved in:
Bibliographic Details
Published in:Industrial relations (Berkeley) 2016-04, Vol.55 (2), p.323-345
Main Author: Webber, Douglas A.
Format: Article
Language:English
Subjects:
Children
Elasticity
Elasticity of demand
Gender differences
Gender differentiation
Gender pay gap
Labor economics
Labor supply
Labour economics
Labour supply
Marriage
Monopsony
Sex differences
Sexes
Studies
Wage differential
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study uses linked employer–employee data to estimate firm‐by‐gender specific labor supply elasticities. Using a dynamic model of labor supply, I find evidence that females face a greater degree of search 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. I find that males face a labor supply elasticity 0.15 points higher than females, which leads to 3.3 percent lower earnings for women. Sixty percent of the elasticity differential can be explained by marriage and child penalties faced by women but not men.
ISSN:0019-8676
1468-232X
DOI:10.1111/irel.12142