Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73340
Authors: 
Hirsch, Boris
Year of Publication: 
2007
Series/Report no.: 
BGPE Discussion Paper 24
Abstract: 
This paper presents an alternative explanation of the gender pay gap resting on a simple Hotelling-style dyopsony model of the labor market. Since there are only two employers equally productive women and men have to commute and face travel cost to do so. We assume that a fraction of the women have higher travel cost, e.g., due to more domestic responsibilities. Employers exploit that women are less inclined to commute to their competitor and offer lower wages to women. Since women’s labor supply at the firm level is for this reason less wage-elastic, this model presents an explanation of wage discrimination in line with Robinson (1933).
Subjects: 
monopsony
gender
discrimination
JEL: 
J16
J42
J71
Document Type: 
Working Paper

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