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The impact of female managers on the gender pay gap: Evidence from linked employer–employee data for Germany

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  • Hirsch, Boris

Abstract

We find that increasing the female share in first-level management by 10% points decreases the unexplained within-job gender pay gap by 0.5 log points. The effect is more pronounced for the female share in second-level than in first-level management.

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  • Hirsch, Boris, 2013. "The impact of female managers on the gender pay gap: Evidence from linked employer–employee data for Germany," Economics Letters, Elsevier, vol. 119(3), pages 348-350.
    • Handle: RePEc:eee:ecolet:v:119:y:2013:i:3:p:348-350
    DOI: 10.1016/j.econlet.2013.03.021
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    References listed on IDEAS

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    1. Elkinawy, Susan & Stater, Mark, 2011. "Gender differences in executive compensation: Variation with board gender composition and time," Journal of Economics and Business, Elsevier, vol. 63(1), pages 23-45.
    2. repec:iab:iabfme:200502(en is not listed on IDEAS
    3. Ana Rute Cardoso & Rudolf Winter-Ebmer, 2010. "Female-Led Firms and Gender Wage Policies," ILR Review, Cornell University, ILR School, vol. 64(1), pages 143-163, October.
    4. Holger Alda & Stefan Bender & Hermann Gartner, 2005. "European Data Watch: The linked employer-employee dataset created from the IAB establishment panel and the process-produced data of the IAB (LIAB)," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(2), pages 327-336.
    5. Bell, Linda A., 2005. "Women-Led Firms and the Gender Gap in Top Executive Jobs," IZA Discussion Papers 1689, Institute of Labor Economics (IZA).
    6. Gartner, Hermann, 2005. "The imputation of wages above the contribution limit with the German IAB employment sample," FDZ Methodenreport 200502_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Elkinawy, Susan & Stater, Mark, 2011. "Gender differences in executive compensation: Variation with board gender composition and time," Journal of Economics and Business, Elsevier, vol. 63(1), pages 23-45, January.
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    Cited by:

    1. Matthew Soener & Olivier Godechot & Mirna Safi, 2023. "Who Benefits from Migrant and Female Labor? Connecting Wages to Demographic Changes in French Workplaces 1," Post-Print hal-04319370, HAL.
    2. Virginia Sondergeld & Katharina Wrohlich, 2023. "Women in Management and the Gender Pay Gap," Discussion Papers of DIW Berlin 2046, DIW Berlin, German Institute for Economic Research.
    3. Schnabel Claus, 2016. "United, Yet Apart? A Note on Persistent Labour Market Differences between Western and Eastern Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 157-179, March.
    4. Hirsch, Boris & Müller, Steffen, 2014. "Firm leadership and the gender pay gap: do active owners discriminate more than hired managers?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 47(1-2), pages 129-142.
    5. Schank, Thorsten & Bossler, Mario & Mosthaf, Alexander, 2016. "More female manager hires through more female managers? Evidence from Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145733, Verein für Socialpolitik / German Economic Association.
    6. Marco Biagetti & Sergio Scicchitano, 2016. "Are women in supervisory positions more discriminated against? A multinomial approach," Working Papers 2, Department of the Treasury, Ministry of the Economy and of Finance.
    7. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2019. "Are Women Doing It For Themselves? Gender Segregation and the Gender Wage Gap," DoQSS Working Papers 19-07, Quantitative Social Science - UCL Social Research Institute, University College London.
    8. Magda, Iga & Cukrowska-Torzewska, Ewa, 2018. "Do Female Managers Help to Lower Within-Firm Gender Pay Gaps? Public Institutions vs. Private Enterprises," IZA Discussion Papers 12026, Institute of Labor Economics (IZA).
    9. Giulia La Mattina & Gabriel Picone & Alban Ahoure & Jose Carlos Kimou, 2017. "Female leaders and gender gaps within the firm: Evidence from three sub-Saharan African countries," WIDER Working Paper Series 063, World Institute for Development Economic Research (UNU-WIDER).
    10. Chau, Nancy H. & Kanbur, Ravi & Soundararajan, Vidhya, 2022. "Employer Power and Employment in Developing Countries," IZA Discussion Papers 15514, Institute of Labor Economics (IZA).
    11. Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2014. "The levelling effect of product market competition on gender wage discrimination," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-14, December.
    12. Fernandes, Mario & Hilber, Simon & Sturm, Jan-Egbert & Walter, Andreas, 2023. "Closing the gender gap in academia? Evidence from an affirmative action program," Research Policy, Elsevier, vol. 52(9).
    13. Bonaccolto-Töpfer, Marina & Castagnetti, Carolina & Rosti, Luisa, 2023. "Changes in the gender pay gap over time: the case of West Germany," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-11.
    14. Karin Halldén & Jenny Säve-Söderbergh & Asa Rosen, 2016. "Immediate Manager Gender and Female Wages - The Importance of Manager Position," CESifo Working Paper Series 5700, CESifo.
    15. Rodrigo Ceni & Estefanía Galván & Cecilia Parada, 2023. "Gender gaps and the role of female bosses: evidence from matched employer-employee administrative data," Documentos de Trabajo (working papers) 23-06, Instituto de Economía - IECON.
    16. Schweiker, Michael, 2017. "In welchen Betrieben verdienen Frauen mehr? Der Einfluss betrieblicher Statusrelationen auf die geschlechtsspezifische Lohnungleichheit [In which firms do female workers earn more? The influence of," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 24(3), pages 321-346.
    17. Sondergeld, Virginia & Wrohlich, Katharina, 2022. "Women's Managerial Representation and the Gender Pay Gap," VfS Annual Conference 2022 (Basel): Big Data in Economics 264013, Verein für Socialpolitik / German Economic Association.
    18. Franziska Handschumacher-Knors, 2023. "Does a gender pay gap exist on executive boards? An empirical multilevel analysis of executive board compensation in German listed companies," Journal of Business Economics, Springer, vol. 93(3), pages 325-357, April.
    19. Aline Zucco, 2019. "Occupational Characteristics and the Gender Pay Gap," Discussion Papers of DIW Berlin 1794, DIW Berlin, German Institute for Economic Research.
    20. Amina Ebrahim & Kezia Lilenstein, 2019. "Gender and the South African labour market: Policy relevant research possibilities using South African tax data," WIDER Working Paper Series wp-2019-31, World Institute for Development Economic Research (UNU-WIDER).
    21. Giulia La Mattina & Gabriel Picone & Alban Ahoure & Jose Carlos Kimou, 2017. "Female leaders and gender gaps within the firm: Evidence from three sub-Saharan African countries," WIDER Working Paper Series wp-2017-63, World Institute for Development Economic Research (UNU-WIDER).
    22. Mario Bossler & Alexander Mosthaf & Thorsten Schank, 2020. "Are Female Managers More Likely to Hire More Female Managers? Evidence from Germany," ILR Review, Cornell University, ILR School, vol. 73(3), pages 676-704, May.
    23. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2022. "Are Women Doing It for Themselves? Female Managers and the Gender Wage Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1329-1355, December.

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    More about this item

    Keywords

    Gender pay gap; Discrimination; Female managers; Germany;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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