Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232608 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13856
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The main aim of this work is to explain the Chilean gender wage gap using a dynamic monopsony model to estimate the labor supply elasticities at the firm level. Our results suggest that the elasticities of labor supply to firms are small, which implies that firms have labor market power. We also found that depending on the especification, Chilean men would earn approximately 19% - 28% more than women as a result of the difference in labor supply elasticities by gender, ceteris paribus. Furthermore, we find that in the long run, the magnitude of between-firm differences in elasticities are higher than within-firm differences, which suggests that the gender wage gap is driven by structural factors that generate gender sorting to firms. Finally, using the same methodology, we find that the elasticities for a high-income countries (e.g. the United States) are higher than those obtained for a middle-income country (e.g. Chile) for both men and women, which suggests higher labor market frictions in middle-income countries. The main difference between USA and Chile comes from the low labor supply elasticity of Chilean women, which appears to be explained from their low recruitment elasticity from nonemploeyment.
Subjects: 
gender pay gap
dynamic monopsony
elasticity of labor supply
worker mobility
Chile
JEL: 
J16
J18
J42
J62
J71
Document Type: 
Working Paper

Files in This Item:
File
Size
232.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.