Market Forces and Sex Discrimination
AbstractWe report new evidence on the existence of sex discrimination in wages and whether competitive market forces act to reduce or eliminate discrimination. Specifically, we use plant- and firm-level data to examine the relationships between profitability, growth and ownership changes, product market power, and the sex composition of a plant's or firm's workforce. Our strongest finding is that among plants with high levels of product market power, those that employ relatively more women are more profitable. No such relationship exists for plants with apparently low levels of market power. This is consistent with sex discrimination in wages in the short run in markets where plants have product market power. We also examine evidence on the longer-run effects of market forces on discrimination, asking whether discriminatory employers with market power are punished over time through lower growth than non-discriminatory employers, or whether discriminatory employers are bought out by non-discriminators. We find little evidence that this occurs over a five-year period, as growth and ownership change for plants with market power are not significantly related to the sex composition of a plant's workforce.
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Bibliographic InfoPaper provided by EconWPA in its series Labor and Demography with number 9807002.
Length: 38 pages
Date of creation: 22 Jul 1998
Date of revision:
Note: 38 pages (title page, abstract, 30 numbered pages, 6 table pages), WordPerfect 8.0
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Web page: http://126.96.36.199
Other versions of this item:
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-10-02 (All new papers)
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