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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
    Phone: (+46) 18 - 471 70 70
    Fax: (+46) 18 - 471 70 71
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    Related research

    Keywords: Gender wage gap; managers; worker sorting;

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    1. Oskar Nordström Skans & Per-Anders Edin & Bertil Holmlund, 2007. "Wage dispersion between and within plants: Sweden 1985-2000," NBER Working Papers 13021, National Bureau of Economic Research, Inc.
    2. Manuel F. Bagues & Berta Esteve-Volart, 2010. "Can Gender Parity Break the Glass Ceiling? Evidence from a Repeated Randomized Experiment," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1301-1328.
    3. Andrea Weber & Christine Zulehner, 2009. "Female Hires and the Success of Start-up Firms," Ruhr Economic Papers 0151, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    4. Carlsson, Mikael & Messina, Julián & Nordström Skans, Oskar, 2011. "Wage Adjustment and Productivity Shocks," Working Paper Series 253, Sveriges Riksbank (Central Bank of Sweden).
    5. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2008. "Social Connections and Incentives in the Workplace: Evidence from Personnel Data," IZA Discussion Papers 3917, Institute for the Study of Labor (IZA).
    6. Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2006. "Manager Race and the Race of New Hires," Institute for Research on Labor and Employment, Working Paper Series qt2cb2q1h1, Institute of Industrial Relations, UC Berkeley.
    7. 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).
    8. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
    9. 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.
    10. Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    11. Christopher Avery & Susan Athey & Peter Zemsky, 2000. "Mentoring and Diversity," American Economic Review, American Economic Association, vol. 90(4), pages 765-786, September.
    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. 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.
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