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

27 Pages Posted: 28 Nov 2006

See all articles by Boris Hirsch

Boris Hirsch

University of Erlangen-Nuremberg

Thorsten Schank

University of Erlangen-Nuremberg

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Date Written: November 2006

Abstract

This paper investigates women's and men's labor supply to the firm within a structural approach based on a dynamic model of new monopsony. Using methods of survival analysis and a linked employer-employee dataset for Germany, we find that labor supply elasticities are small (0.9-2.4) and that women's labor supply to the firm is substantially less elastic than men's (which is the reverse of gender differences in labor supply usually found at the level of the market). One implication of these findings is that the gender pay gap could be the result of wage discrimination by profit-maximizing monopsonistic employers.

Keywords: labor supply, monopsony, gender, discrimination

JEL Classification: J42, J60, J71

Suggested Citation

Hirsch, Boris and Schank, Thorsten and Schnabel, Claus, Gender Differences in Labor Supply to Monopsonistic Firms: An Empirical Analysis Using Linked Employer-Employee Data from Germany (November 2006). IZA Discussion Paper No. 2443, Available at SSRN: https://ssrn.com/abstract=947466

Boris Hirsch

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

HOME PAGE: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english/hirsch_e.htm

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

Claus Schnabel (Contact Author)

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
Lange Gasse 20
D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
96
Abstract Views
725
rank
327,938
PlumX Metrics