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What Can Monopsony Explain of the Gender Wage Differential in Italy?

Sulis, Giovanni (2007) What Can Monopsony Explain of the Gender Wage Differential in Italy? Working Paper. CRENoS.

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Official URL: http://www.crenos.it/working/pdf/07-13.pdf

Abstract

In this paper I study gender wage differentials in Italy using first-order predictions of monopsony and search models. Using different empirical strategies, I provide estimates of the labour supply elasticity facing a single firm. Results indicate that firms can (third degree) wage discriminate because the elasticity of labour supply to the firm is lower for women, as postulated by the monopsony model. I also use the abolition of a wage indexation mechanism (Scala Mobile) as an experiment to test the predictions of monopsony against other models. By comparing correlations of changes in relative employment and relative wages of men and women before and after the reform, I find that relative employment of men responded positively to the exogenous wage increase in the relative wage differential.

Item Type:Technical Report / Working Paper / Project Report (Working Paper)
Publisher:CRENoS
Date:2007
Institution:Universita' degli Studi di Cagliari
Divisions:Centri > CRENoS Centro Ricerche Economiche Nord Sud
Subjects:Area 13 - Scienze economiche e statistiche > SECS-S/05 Statistica sociale
Uncontrolled Keywords:Monopsony, Gender Wage Differentials, Elasticity of Labour Supply, Employer Size-Effect, Italy
ID Code:197
Deposited On:07 Nov 2008 10:35

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