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An Economic Theory of the Glass Ceiling

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  • Paul A. Grout
  • In-Uck Park
  • Silvia Sonderegger

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Abstract

The glass ceiling is one of the most controversial and emotive aspects of employment in organisations. This paper provides a model of the glass ceiling that exhibits the following features that are frequently thought to characterise the problem: (i) there is a lower number of female employees in higher positions, (ii) women have to work harder than men to obtain equivalent jobs, (iii) women are then paid less than men when promoted, and (iv) some organisations are more female friendly than others. These features emerge as an equilibrium phenomenon, when identical firms compete in "Bertrand-like" fashion. Furthermore, they also occur even when offering women the same contract as men in higher positions would be sufficient to ensure that women in those positions would always prefer permanent career over non-market alternatives.

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Bibliographic Info

Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 07/183.

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Length: 27 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:bri:cmpowp:07/183

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Keywords: Glass Ceiling; Promotions; Career Options;

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  1. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
  2. Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance In Competitive Environments: Gender Differences," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1049-1074, August.
  3. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA).
  4. Claudia Goldin & Cecilia Rouse, 1997. "Orchestrating Impartiality: The Impact of "Blind" Auditions on Female Musicians," NBER Working Papers 5903, National Bureau of Economic Research, Inc.
  5. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away from Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1067-1101, 08.
  6. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  7. Kanazawa, Satoshi, 2005. "Is "discrimination" necessary to explain the sex gap in earnings?," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 269-287, April.
  8. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  9. T. Clifton Green & Narasimhan Jegadeesh & Yue Tang, 2007. "Gender and Job Performance: Evidence from Wall Street," NBER Working Papers 12897, National Bureau of Economic Research, Inc.
  10. Roland G. Fryer, Jr., 2006. "Belief Flipping in a Dynamic Model of Statistical Discrimination," NBER Working Papers 12174, National Bureau of Economic Research, Inc.
  11. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
  12. David Neumark & Roy J. Bank & Kyle D. Van Nort, 1995. "Sex Discrimination in Restaurant Hiring: An Audit Study," NBER Working Papers 5024, National Bureau of Economic Research, Inc.
  13. David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
  14. Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S106-23, January.
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