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#MeToo meets the mutual fund industry: Productivity effects of sexual harassment

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  • Cici, Gjergji
  • Hendriock, Mario
  • Jaspersen, Stefan
  • Kempf, Alexander

Abstract

Sexual harassment, a widespread problem in the workplace, arguably keeps female employees from optimally employing their human capital. We show that removing or diminishing this friction improves productivity. Specifically, using the male-dominated fund industry as our testing ground, we show that productivity of female mutual fund managers significantly increased after the Harvey Weinstein scandal and the onset of the #MeToo movement. Evidence from lawsuits and organizational changes at several fund companies also suggests that reducing the threat of sexual harassment improves productivity. Our results have important implications for the policy debate on workforce diversity and costs of sexual harassment.

Suggested Citation

  • Cici, Gjergji & Hendriock, Mario & Jaspersen, Stefan & Kempf, Alexander, 2019. "#MeToo meets the mutual fund industry: Productivity effects of sexual harassment," CFR Working Papers 19-03, University of Cologne, Centre for Financial Research (CFR).
    • Handle: RePEc:zbw:cfrwps:1903
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    References listed on IDEAS

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    More about this item

    Keywords

    sexual harassment; mutual fund performance; gender discrimination; organizational frictions; human capital;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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