1. Monopsony in Caring Labor: Job Search Model with Care Kate Bahn IAFFE Annual Conference Berlin, July 2015

2. Basic Job Search Model Wages are determined by worker characteristics during search and wage distribution across firms. Generally employed and unemployed. Manning (2003) back-of-the-envelope measure of labor market frictions:

3. Job Search Model w/ Job and Worker Characteristics Following Rosen (1974) and Lang and Majumdar (2004) Type-F and Type-M workers Job characteristic i=0 or i=1 Workers have preferences over job characteristics Job offers = compensation + utility given by job characteristic = total utility received from a job

4. Caring and Non-Caring Workers Preferences give by: j = m, f Assume: The relative disamenity for jobs with caring characteristics is lower for workers with a preference for the characteristic. Utility given by:

5. Caring and Non-Caring Jobs Productivity in caring jobs: Productivity in non-caring jobs: Profit in caring firms: Profit in non-caring firms:

6. Market Structures and Outcomes No frictions: competitive outcome. Compensating wage differentials Salary difference given by: Frictions with information: both workers in both types of jobs. Disproportionate type-f workers in caring jobs. Lower pay in caring jobs because it is averaged toward lower wage offers. Type-F workers will even receive lower wages in the non-caring jobs. Frictions with no information: market will not clear. Offers designed for caring workers offered to non-caring workers who do not accept. Employers incur a cost associated with the probability of making a job offer that will not be accepted. Equilibrium exist where the market does not clear.

7. Next steps Are there equilibrium conditions that could lead to pareto improvement of more higher paid care work and more employed care workers? How to factor in how a preference for care is disproportionately socially constructed for women workers? How to relate care as a worker characteristic (a feeling) and care as a job characteristic (an action)? How to account more broadly for the social value of care above the market value in this framework?

8. Thank you! Comments and feedback: katebahn@gmail.com