Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35465 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 3930
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Motivated by models of worker flows, we argue in this paper that monopsonistic discrimination may be a substantial factor behind the overall gender wage gap. On matched employer-employee data from Norway, we estimate establishment-specific wage premiums separately for men and women, conditioning on fixed individual effects. Regressions of worker turnover on the wage premium identify less wage elastic labour supply facing each establishment of women than that of men. Workforce gender composition is strongly related to employers' wage policies. The results suggest that 70-90 percent of the gender wage gap for low-educated workers may be attributed to differences in labour market frictions between men and women, while the similar figures for high-educated workers ranges from 20 to 70 percent.
Subjects: 
Gender wage gap
monopsony
JEL: 
J16
J31
J42
J63
J71
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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