New market power models and sex differences in pay

Michael R. Ransom, Ronald L. Oaxaca

Research output: Contribution to journalArticlepeer-review

45 Scopus citations

Abstract

In the context of certain models, it is possible to infer the elasticity of labor supply to the firm from the elasticity of the quit rate with respect to the wage. We use this strategy to estimate the elasticity of labor supply for men and women workers at a chain of grocery stores, identifying separation elasticities from differences in wages and separation rates across different job titles within the firm. We estimate that women have lower elasticities, so a Robinson-style monopsony model can explain reasonably well the lower relative pay of women in the retail grocery industry.

Original languageEnglish (US)
Pages (from-to)267-289
Number of pages23
JournalJournal of Labor Economics
Volume28
Issue number2
DOIs
StatePublished - Apr 2010

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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