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Foreign Capital and Gender Differences in Promotions: Evidence From Large Brazilian Manufacturing Firms

Author

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  • Danilo Coelho
  • Miguel N. Foguel
  • Marcelo Fernandes

Abstract

This paper examines whether there exists obstacles hindering women's ascension in the largest firms of the Brazilian manufacturing industry. In particular, we check whether gender matters in the time it takes to get a promotion to a managerial position. Once we control for covariate-dependent censoring, we find significant evidence that foreign-owned firms feature less gender differences in promotions than domestic firms. The same applies in other dimensions of career progress, namely, wage growth and promotion likelihood. It turns out that wage gains after promotion contribute to generating wage differential between males and females only within domestic firms. This is consistent with statistical discrimination and with the self-selection that results from employees optimally choosing which jobs to apply for. Jobs in domestic firms offer more flexibility in terms of hours per week, whereas multinationals compete for the most career-concerned workers.

Suggested Citation

  • Danilo Coelho & Miguel N. Foguel & Marcelo Fernandes, 2014. "Foreign Capital and Gender Differences in Promotions: Evidence From Large Brazilian Manufacturing Firms," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 55-89, January.
    • Handle: RePEc:col:000425:010921
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    More about this item

    Keywords

    career mobility; duration; multinational; self-selection; statistical discrimination.;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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