Sex differences in pay in a "new monopsony" model of the labor market
By: by Michael R. Ransom, Ronald L. Oaxaca.
Contributors: Oaxaca, Ronald L.
Series: Discussion paper ;; no. 1870; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1870
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Wage differentials.; Sex discrimination against women.; Labor market.; Grocery trade -- Employees.
Description: "We use a simple framework, adopted from general equilibrium search models, to estimate the extent to which monopsony power (or labor market frictions) can account for gender differences in pay, using data from a chain of regional grocery stores. In this framework, the elasticity of labor supply to the firm can be inferred from estimates of the elasticity of the separation rate with respect to the wage. We identify elasticities of separation from differences in wages and separation rates across job titles and across different years. We estimate elasticities of labor supply to the firm of about 3.5 for men and about 2.7 for women, suggesting significant wage-setting power for the firm. The differences in estimated elasticities of labor supply predict wage differences that are close to the observed male/female wage differences at the firm"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 12/9/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.