Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35752
Authors: 
Hirsch, Boris
König, Marion
Möller, Joachim
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4231
Abstract: 
In this paper, we investigate regional differences in the gender pay gap both theoretically and empirically. Within a spatial oligopsony model, we show that more densely populated labour markets are more competitive and constrain employers' ability to discriminate against women. Utilising a large administrative data set for western Germany and a flexible semi-parametric propensity score matching approach, we find that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly ten percentage points remained surprisingly constant over the entire observation period of thirty years.
Subjects: 
Gender pay gap
urban-rural differences
matching
monopsonistic discrimination
JEL: 
J16
J42
J71
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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