Download Monopsonistic Labour Markets and the Gender Pay Gap: Theory by Boris Hirsch PDF

By Boris Hirsch

This publication investigates types of spatial and dynamic monopsony and their software to the power empirical regularity of the gender pay hole. Theoretically, the most end is that employers own extra monopsony energy over their woman staff if girls are much less pushed through pecuniary issues of their selection of employers than males. Employers may well make the most this to extend their earnings on the detriment of women’s wages. Empirically, it really is certainly chanced on that women’s labour offer to the enterprise is much less wage-elastic than men’s and that at the least a 3rd of the gender pay hole within the info investigated can result from employers undertaking monopsonistic discrimination. for that reason, a monopsonistic method of gender discrimination within the labour marketplace sincerely contributes to the industrial realizing of the gender pay hole. It not just offers an intuitively beautiful rationalization of the distance from average monetary reasoning, however it is additionally corroborated through empirical remark.

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Additional resources for Monopsonistic Labour Markets and the Gender Pay Gap: Theory and Empirical Evidence (Lecture Notes in Economics and Mathematical Systems)

Example text

A simple static model of monopsony, similar to the standard monopsony model proposed by Robinson (1969, pp. 218–228), with a single buyer of labour is laid out, which serves as a benchmark for the following more sophisticated models of spatial monopsony. Absent from this model are issues of (spatial) competition which will play an important role in the remainder of Part I. Chapter 3, Short-Run Spatial Monopsony, builds on Chapter 2 by setting up a spatial monopsony model, more precisely both a model of spatial monopsony with a single employer and a model of spatial oligopsony with many employers.

12), that is, assume that changing the wage has no impact on the firm’s market radius. x/. Accordingly, the weight applied to the individual labour supply elasticity of workers distanced x from the firm is just the share of the firm’s labour that is supplied by these workers. Furthermore, the weight given to workers farther away is lower than that of workers nearby, because h (like l) is strictly decreasing in distance x. All this seems intuitively appealing. w; x/. , Löfgren, 1985; 1986), which is an analogue to the demand classification introduced by Stevens and Rydell (1966).

Proof. 2. Functional forms similar to this quite flexible one, in which all examples considered above are nested, are discussed by several authors, among them Greenhut and Greenhut (1975; 1977), Greenhut et al. (1975; 1987), and Benson (1980; 1984). 20) with l > 0 reveals the underlying simplicity in structure. 6 (Constant Individual Labour Supply). 21) with some reservation income r 0. 16 Not surprisingly, (generalised) exponential individual labour supply is log-linear and therefore as convex as an exponential.

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