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Employee Discrimination against Female Executives

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  • Kodama, Naomi
  • Odaki, Kazuhiko

Abstract

The theory of employee discrimination gives a possible explanation for the scarcity of female executive officers. This paper tests the employee discrimination hypothesis by measuring the wage premium received by employees working with female executives against their tastes for discrimination. Using a fixed effects analysis of establishment-level panel data on Japanese employees, we separate the discrimination premiums that would otherwise cause a bias from the establishment-level unobserved productivity and unobserved employee characteristics by gender of executives. Our findings reveal that both male and female employees receive small but significant wage premiums (0.6-0.9 percent) when working for female executives.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26001/1/DP611.pdf
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Bibliographic Info

Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series CIS Discussion paper series with number 611.

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Length: 24 p.
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:hit:cisdps:611

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Keywords: employee discrimination; female executive; compensating wage differential;

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References

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  1. Paul Frijters & Michael A Shileds & Nikolaos Theodoropoulos & Stephen Wheatley, 2003. "Testing for Employee Discrimination using Matched Employer-Employee Data: Theory and Evidence," School of Economics and Finance Discussion Papers and Working Papers Series 168b, School of Economics and Finance, Queensland University of Technology.
  2. Chiswick, Barry R, 1973. "Racial Discrimination in the Labor Market: A Test of Alternative Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1330-52, Nov.-Dec..
  3. Usui, Emiko, 2008. "Job satisfaction and the gender composition of jobs," Economics Letters, Elsevier, vol. 99(1), pages 23-26, April.
  4. James F. Ragan & Carol Horton Tremblay, 1988. "Testing for Employee Discrimination by Race and Sex," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 123-137.
  5. Ehrenberg, Ronald G & Schumann, Paul L, 1984. "Compensating Wage Differentials for Mandatory Overtime?," Economic Inquiry, Western Economic Association International, vol. 22(4), pages 460-78, October.
  6. Buffum, David & Whaples, Robert, 1995. "Fear and Lathing in the Michigan Furniture Industry: Employee-Based Discrimination a Century Ago," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 234-52, April.
  7. Colin P. Green & John S. Heywood, 2011. "Flexible Contracts And Subjective Well‐Being," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 716-729, 07.
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