Hirsch Monopsonistic Labour Markets and the Gender Pay Gap

Theory and Empirical Evidence
1. Auflage 2010
ISBN: 978-3-642-10409-1
Verlag: Springer
Format: PDF
Kopierschutz: Wasserzeichen (»Systemvoraussetzungen)

E-Book, Englisch, 280 Seiten

This book investigates models of spatial and dynamic monopsony and their application to the persistent empirical regularity of the gender pay gap.

Autoren/Hrsg.

Hirsch, Boris

Inhaltsverzeichnis

1;Acknowledgements;6
2;Contents;7
3;List of Figures;11
4;List of Tables;14
5;1 Introduction;19
5.1;1.1 Wage Setting vs. Wage Taking;19
5.2;1.2 `Classic' vs. `New' Monopsony;21
5.3;1.3 Plan of the Book;24
6;Part I Spatial Monopsony;27
6.1;2 Simple Static Monopsony;28
6.2;3 Short-Run Spatial Monopsony;32
6.2.1;3.1 The Basic Assumptions;32
6.2.2;3.2 The Elasticity of the Firm's Aggregate Labour Supply;36
6.2.3;3.3 Convexity and Elasticity of Individual Labour Supply;38
6.2.3.1;3.3.1 Convexity Relative to an Exponential;38
6.2.3.2;3.3.2 Spatial Implications of Individual Labour Supply's Convexity;44
6.2.4;3.4 Spatial vs. Spaceless Monopsony;45
6.2.5;3.5 Firms' Interaction and Conjectural Variations;48
6.2.6;3.6 The Short-Run Equilibrium;52
6.2.7;3.7 Short-Run Comparative Statics;55
6.2.8;3.8 Conclusions;63
6.3;4 Long-Run Spatial Monopsony;65
6.3.1;4.1 The Zero-Profit Locus;66
6.3.2;4.2 The Wage-Setting Curve;68
6.3.3;4.3 The Long-Run Equilibrium;71
6.3.4;4.4 Long-Run Comparative Statics;76
6.3.4.1;4.4.1 Changes in the Position of the Zero-Profit Locus and the Wage-Setting Curve;77
6.3.4.2;4.4.2 Comparative Statics in the Fixed Costs and the Worker Density;78
6.3.4.3;4.4.3 Comparative Statics in the Marginal Revenue Product of Labour;81
6.3.4.4;4.4.4 Comparative Statics in the Travel Cost;83
6.3.5;4.5 Long-Run Spatial Monopsony under Linear Individual Labour Supply;86
6.3.5.1;4.5.1 The Löschian Equilibrium;91
6.3.5.2;4.5.2 The Greenhut–Ohta Equilibrium;94
6.3.5.3;4.5.3 The Hotelling–Smithies Equilibrium;95
6.3.6;4.6 Long-Run Spatial Monopsony with Constant Individual Labour Supply;98
6.3.6.1;4.6.1 The Hotelling–Smithies and the Greenhut–Ohta Equilibrium;99
6.3.6.2;4.6.2 Allowing for Varying Participation;103
6.3.6.3;4.6.3 The Löschian Equilibrium;106
6.3.7;4.7 Conclusions;108
6.4;5 Spatial Monopsony and the Gender Pay Gap;111
6.4.1;5.1 The Gender Pay Gap and Beckerian vs. Robinsonian Discrimination;111
6.4.2;5.2 The Model;114
6.4.2.1;5.2.1 The Basic Assumptions;114
6.4.2.2;5.2.2 Firm-Level Labour Supply and Firms' Wage-Setting Behaviour;116
6.4.2.3;5.2.3 The Equilibrium and Its Properties;119
6.4.3;5.3 Conclusions;124
6.5;6 Spatial Monopsony and Regional Differences in the Gender Pay Gap;128
6.5.1;6.1 Theoretical Considerations;129
6.5.2;6.2 Empirical Specification;131
6.5.3;6.3 Data;134
6.5.4;6.4 Descriptive Evidence;138
6.5.5;6.5 Multivariate Evidence;140
6.5.6;6.6 Conclusions;143
7;Part II Dynamic Monopsony;146
7.1;7 Simple Dynamic Monopsony;147
7.2;8 A General Equilibrium Model of Dynamic Monopsony;151
7.2.1;8.1 Some Introductory Remarks;151
7.2.2;8.2 The Model;153
7.2.2.1;8.2.1 The Basic Assumptions;153
7.2.2.2;8.2.2 Workers' Reservation Wage;155
7.2.2.3;8.2.3 Firms' Steady-State Labour Supply;157
7.2.2.4;8.2.4 The Steady-State Equilibrium and Its Properties;158
7.2.3;8.3 Some Concluding Remarks;162
7.3;9 Dynamic Monopsony and the Gender Pay Gap;164
7.3.1;9.1 A Simple Measure of On-the-Job Search Frictions;166
7.3.2;9.2 A Semi-Structural Estimation Approach to the Firm-Level Labour Supply Elasticity;168
7.3.2.1;9.2.1 Combining Simple Dynamic Monopsony and the Burdett–Mortensen Model;168
7.3.2.2;9.2.2 Introducing Stochastic Job-to-Job Transitions;170
7.3.2.3;9.2.3 Introducing Elastic Transitions from and to Non-Employment;171
7.3.2.4;9.2.4 Procedure for Identifying the Long-Run Labour Supply Elasticity at the Level of the Firm;173
7.3.2.5;9.2.5 Empirical Specification;173
7.3.2.6;9.2.6 Related Empirical Literature;176
7.3.3;9.3 Data;177
7.3.4;9.4 Gender Differences in Search Frictions;181
7.3.5;9.5 Estimates of the Gender Difference in Long-Run Firm-Level Labour Supply Elasticities;186
7.3.5.1;9.5.1 Transition to Employment;187
7.3.5.2;9.5.2 Transition to Non-Employment;194
7.3.5.3;9.5.3 Hiring from Employment;200
7.3.5.4;9.5.4 Estimates of the Long-Run Firm-Level Labour Supply Elasticities;205
7.3.6;9.6 Conclusions;212
7.4;10 Concluding Remarks;214
7.5;A Appendix: Spatial Monopsony;219
7.5.1;A.1 Proof of Remark 3.2;219
7.5.2;A.2 Proof of Example 3.5;220
7.5.3;A.3 Proof of Proposition 3.3;222
7.5.4;A.4 Proof of Proposition 3.5;229
7.5.5;A.5 The Slope of the Zero-Profit Locus in the Löschian Long-Run Equilibrium;232
7.5.6;A.6 Proof of Lemma 4.1;232
7.5.7;A.7 Proof of Lemma 4.3;234
7.5.8;A.8 Comparative Statics under Linear Spatial Monopsony;238
7.5.9;A.9 The Implicit Solution for the Long-Run Hotelling–Smithies Equilibrium Wage in the Linear Model;239
7.5.10;A.10 Proof of Corollary 5.3;240
7.5.11;A.11 Appendix to Chapter 6;241
7.6;B Appendix: Dynamic Monopsony;243
7.6.1;B.1 The Relation between the Firm's Short- and Long-Run Labour Supply Elasticity;243
7.6.2;B.2 Workers' Optimal Reservation Wage;244
7.6.3;B.3 Proof of Proposition 8.1: Workers' Expected Wage;245
7.6.4;B.4 Proof of Equation (9.1);245
7.6.5;B.5 Proof of Equation (9.12);247
7.6.6;B.6 Proof of Equation (9.17);248
7.6.7;B.7 Appendix to Chapter 9;248
7.7;References;257
8;Index
;269