Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany

A-Tier
Journal: Journal of Labor Economics
Year: 2010
Volume: 28
Issue: 2
Pages: 291-330

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article investigates women's and men's labor supply to the firm within a semistructural approach based on a dynamic model of new monopsony. Using methods of survival analysis and a large linked employer-employee data set for Germany, we find that labor supply elasticities are small (1.9-3.7) and that women's labor supply to the firm is less elastic than men's (which is the reverse of gender differences in labor supply usually found at the level of the market). Our results imply that at least one-third of the gender pay gap might be wage discrimination by profit-maximizing monopsonistic employers. (c) 2010 by The University of Chicago.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:28:y:2010:i:2:p:291-330
Journal Field
Labor
Author Count
3
Added to Database
2026-01-29