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Wage Gaps, Earnings Gaps, and the Market Power of Employers

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  • Bredemeier, Christian

Abstract

Women are less mobile between firms than men which gives employers more market power over women and explains parts of the gender wage gap. I rationalize this observation as a consequence of different gender roles in the household. The higher a spouse's earnings, the more likely relative wage differences outweigh utility differences between jobs. About 87\% of estimated differences in inter-firm mobility are attributed to this effect and are, thus, endogenous. This implies mutually enforcing cycles between wage gaps, earnings gaps, and employers' market power and has implications for the effects of labor-market policies.

Suggested Citation

  • Bredemeier, Christian, 2016. "Wage Gaps, Earnings Gaps, and the Market Power of Employers," VfS Annual Conference 2016 (Augsburg): Demographic Change 145935, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145935
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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