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Manager impartiality? Worker-firm matching and the gender wage gap

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  • Hensvik, Lena

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    (IFAU - Institute for Labour Market Policy Evaluation)

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    Abstract

    This paper examines whether women benefit from working under female management using Swedish matched employer-employee panel data. I account for unobserved heterogeneity among both workers and firms potentially correlated with manager gender. The results show a substantial negative and statistically significant correlation between the proportion of female managers and the establishment’s gender wage gap. However, estimates that account for sorting on unobserved worker skills do not support that that managers favor same-sex workers in wage setting. Additional results show female-led organizations recruit more non-managerial, high-wage women but this is primarily due to (unobserved) firm attributes rather than gender-specific management practices.

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    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:22.

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    Length: 40 pages
    Date of creation: 30 Nov 2011
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2011_022

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    Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
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    Keywords: Gender wage gap; managers; worker sorting;

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    1. Aslund, Olof & Hensvik, Lena & Nordström Skans, Oskar, 2009. "Seeking Similarity: How Immigrants and Natives Manage at the Labor Market," IZA Discussion Papers 4640, Institute for the Study of Labor (IZA).
    2. Carlsson, Mikael & Messina, Julián & Nordström Skans, Oskar, 2011. "Wage Adjustment and Productivity Shocks," IZA Discussion Papers 5719, Institute for the Study of Labor (IZA).
    3. Weber, Andrea & Zulehner, Christine, 2009. "Female Hires and the Success of Start-up Firms," IZA Discussion Papers 4568, Institute for the Study of Labor (IZA).
    4. Claudia Goldin, 2013. "A Pollution Theory of Discrimination: Male and Female Differences in Occupations and Earnings," NBER Chapters, in: Human Capital in History: The American Record National Bureau of Economic Research, Inc.
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    6. Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage dispersion between and within plants: Sweden 1985-2000," Working Paper Series 2006:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, 03.
    8. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
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    11. Illoong Kwon & Eva M. Meyersson Milgrom, 2007. "Status, Relative Pay, and Wage Growth: Evidence from M&A," Discussion Papers 07-026, Stanford Institute for Economic Policy Research.
    12. Cobb-Clark, D., 1998. "Getting Ahead: the Determinants of and Payoffs to Internal Promotion for Young Men and Women," CEPR Discussion Papers 395, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    13. Nabanita Datta Gupta & Ronald L. Oaxaca & Nina Smith, 2006. "Swimming upstream, floating downstream: Comparing women's relative wage progress in the United States and Denmark," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 243-266, January.
    14. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-55, July.
    15. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Connections and Incentives in the Workplace: Evidence from Personnel Data," CEPR Discussion Papers 7114, C.E.P.R. Discussion Papers.
    16. Francine D. Blau & Janet M. Currie & Rachel T.A. Croson & Donna K. Ginther, 2010. "Can Mentoring Help Female Assistant Professors? Interim Results from a Randomized Trial," NBER Working Papers 15707, National Bureau of Economic Research, Inc.
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