Monopsonistic Labour Markets and the Gender Pay Gap

Theory and Empirical Evidence

  • Boris Hirsch

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 639)

Table of contents

  1. Front Matter
    Pages i-xxiii
  2. Spatial Monopsony

    1. Front Matter
      Pages 10-10
    2. Boris Hirsch
      Pages 1-8
    3. Boris Hirsch
      Pages 11-14
    4. Boris Hirsch
      Pages 15-47
    5. Boris Hirsch
      Pages 49-94
    6. Boris Hirsch
      Pages 95-111
  3. Dynamic Monopsony

    1. Front Matter
      Pages 132-132
    2. Boris Hirsch
      Pages 133-136
    3. Boris Hirsch
      Pages 151-200
    4. Boris Hirsch
      Pages 201-205
  4. Back Matter
    Pages 207-259

About this book


This book investigates models of spatial and dynamic monopsony and their application to the persistent empirical regularity of the gender pay gap. Theoretically, the main conclusion is that employers possess more monopsony power over their female employees if women are less driven by pecuniary considerations in their choice of employers than men. Employers may exploit this to increase their profits at the detriment of women’s wages. Empirically, it is indeed found that women’s labour supply to the firm is less wage-elastic than men’s and that at least a third of the gender pay gap in the data investigated may result from employers engaging in monopsonistic discrimination. Therefore, a monopsonistic approach to gender discrimination in the labour market clearly contributes to the economic understanding of the gender pay gap. It not only provides an intuitively appealing explanation of the gap from standard economic reasoning, but it is also corroborated by empirical observation.


Discrimination Gender Gender Pay Gap Labour Supply Monopsony Nation women

Authors and affiliations

  • Boris Hirsch
    • 1
  1. 1.Volkswirtschaftliches InstitutUniversität Erlangen-NürnbergNürnbergGermany

Bibliographic information

  • DOI
  • Copyright Information Springer-Verlag Berlin Heidelberg 2010
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-10408-4
  • Online ISBN 978-3-642-10409-1
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site
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Finance, Business & Banking