New market power models and sex differences in pay

Michael R. Ransom, Ronald L Oaxaca

Research output: Contribution to journalArticle

40 Citations (Scopus)

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

Fingerprint

New markets
Sex differences
Market power
Elasticity
Labor supply
Wages
Monopsony
Grocery stores
Quits
Women workers
Grocery
Retail
Industry

ASJC Scopus subject areas

  • Economics and Econometrics
  • Industrial relations

Cite this

New market power models and sex differences in pay. / Ransom, Michael R.; Oaxaca, Ronald L.

In: Journal of Labor Economics, Vol. 28, No. 2, 04.2010, p. 267-289.

Research output: Contribution to journalArticle

Ransom, Michael R. ; Oaxaca, Ronald L. / New market power models and sex differences in pay. In: Journal of Labor Economics. 2010 ; Vol. 28, No. 2. pp. 267-289.
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