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The levelling effect of product market competition on gender wage discrimination

Research output: Journal contributions › Journal articles › Research › peer-review

Authors

Using linked employer–employee panel data for West Germany that include direct information on the competition faced by plants, we investigate the effect of product market competition on the gender pay gap. Controlling for match fixed effects, we find that intensified competition significantly lowers the unexplained gap in plants with neither collective agreements nor a works council. Conversely, there is no effect in plants with these types of worker codetermination, which are unlikely to have enough discretion to adjust wages in the short run. We also document a larger competition effect in plants with few females in their workforces. Our findings are in line with Beckerian taste-based employer wage discrimination that is limited by competitive forces.
Original languageEnglish
Article number19
JournalIZA Journal of Labor Economics
Volume3
Issue number1
Pages (from-to)1-14
Number of pages14
ISSN2193-8997
DOIs
Publication statusPublished - 01.12.2014
Externally publishedYes

Bibliographical note

Funding Information:
We would like to thank Christian Dustmann, Andrea Weber, Thomas Zwick, three anonymous referees, and the editor of this journal for very useful suggestions. We further appreciate the comments received at the 2014 annual meetings of the Ausschuss für Bevölkerungsökonomie im Verein für Socialpolitik, the European Society for Population Economics, and the European Association of Labour Economists as well as the 2014 BGPE workshop. Writing of this paper has been partially supported by a BGPE scholarship to Michael Oberfichtner. Responsible editor: Klaus F. Zimmermann 1University of Erlangen–Nuremberg, Chair of Labour and Regional Economics, Lange Gasse 20, 90403 Nuremberg, Germany, and IZA, Bonn, Germany. 2University of Erlangen–Nuremberg, Chair of Labour and Regional Economics, Lange Gasse 20, 90403 Nuremberg, Germany.

Publisher Copyright:
© 2014, Hirsch et al.; licensee Springer.

    Research areas

  • Economics - Gender Pay gap, Discrimination, Product market competition

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Unions as insurance: Workplace unionization and workers' outcomes during COVID-19

Braakmann, N. & Hirsch, B., 04.2024, In: Industrial Relations. 63, 2, p. 152-171 20 p.

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Monopsonistic labour markets

Hirsch, B. & Jahn, E. J., 19.09.2023, Elgar Encyclopedia of Labour Studies. Eriksson, T. (ed.). Cheltenham: Edward Elgar Publishing, p. 130-133 4 p. (Elgar encyclopedias in economics and finance series).

Research output: Contributions to collected editions/works › Contributions to collected editions/anthologies › Research

Non-base compensation and the gender pay gap

Hirsch, B. & Lentge, P., 01.09.2022, In: Labour - Review of labour economics and industrial relations. 36, 3, p. 277-301 25 p.

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The urban wage premium in imperfect labor markets

Hirsch, B., Jahn, E. J., Manning, A. & Oberfichtner, M., 01.04.2022, In: Journal of Human Resources. 57, SpecialIssue 1, p. S111-S136 26 p.

Research output: Journal contributions › Journal articles › Research › peer-review

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