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Competition, Takeovers and Gender Discrimination

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  • Heyman, Fredrik

    ()
    (Research Institute of Industrial Economics (IFN))

  • Svaleryd, Helena

    ()
    (Research Institute of Industrial Economics (IFN))

  • Vlachos, Jonas

    ()
    (Stockholm University)

Abstract

Theories of taste-based discrimination predict that competitive pressures will drive discriminatory behavior out of the market. Using detailed matched employer-employee data, we analyze how firm takeovers and product market competition are related to the gender composition of the firm’s workforce and the gender wage gap. Using a difference-in-difference framework and dealing with several endogeneity concerns, we find that the share of female employees increases as a result of an ownership change, in particular when product market competition is weak. Further, increased competition reduces the gender wage gap, especially among highly educated employees. While the estimated wage effect is quite small, the results support the main theoretical predictions.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 734.

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Length: 40 pages
Date of creation: 21 Feb 2008
Date of revision:
Handle: RePEc:hhs:iuiwop:0734

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Keywords: Discrimination; Competition; Takeovers; Wages;

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Cited by:
  1. Aparicio Fenoll, Ainhoa, 2011. "The Effect of Product Market Competition on Job Instability," IZA Discussion Papers 5669, Institute for the Study of Labor (IZA).

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