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Why Is Workplace Sexual Harassment Underreported? The Value of Outside Options amid the Threat of Retaliation

Author

Listed:
  • Gordon B. Dahl
  • Matthew Knepper

Abstract

Why is workplace sexual harassment chronically underreported? We hypothesize that employers coerce victims into silence through the threat of a retaliatory firing. To test this, we estimate how two external shocks that reduce workers' outside options—unemployment rate increases and sharp cuts to unemployment insurance benefits—affect the selectivity of sexual harassment charges filed with the Equal Employment Opportunity Commission. We find that both shocks increase selectivity, which implies an increase in underreporting. Bolstering these findings, anonymous Google searches for "sexual harassment in the workplace" (total prevalence) spike relative to charges filed (reported prevalence) during the Great Recession.

Suggested Citation

  • Gordon B. Dahl & Matthew Knepper, 2026. "Why Is Workplace Sexual Harassment Underreported? The Value of Outside Options amid the Threat of Retaliation," American Economic Review, American Economic Association, vol. 116(3), pages 897-933, March.
    • Handle: RePEc:aea:aecrev:v:116:y:2026:i:3:p:897-933
    DOI: 10.1257/aer.20221703
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    2. Laura Boudreau & Sylvain Chassang & Ada González-Torre & Rachel Heath, 2023. "Monitoring Harassment in Organizations," Working Papers 311, Princeton University, Department of Economics, Center for Economic Policy Studies..
    3. Cai, Xiqian & Chen, Shuai & Cheng, Zhengquan, 2024. "The #Metoo Movement and Judges' Gender Gap in Decisions," IZA Discussion Papers 17115, IZA Network @ LISER.
    4. Cai, Xiqian & Chen, Shuai & Cheng, Zhengquan, 2024. "The #MeToo Movement and Judges' Gender Gap in Decisions," GLO Discussion Paper Series 1453, Global Labor Organization (GLO).
    5. Sofia Amaral & Gordon B. Dahl & Victoria Endl-Geyer & Timo Hener & Helmut Rainer, 2023. "Deterrence or Backlash? Arrests and the Dynamics of Domestic Violence," NBER Working Papers 30855, National Bureau of Economic Research, Inc.
    6. Abi Adams-Prassl & Kristiina Huttunen & Emily Nix & Ning Zhang, 2024. "Violence against Women at Work," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 937-991.
    7. Serra-Sastre, Victoria, 2024. "Workplace violence and intention to quit in the English NHS," LSE Research Online Documents on Economics 121623, London School of Economics and Political Science, LSE Library.
    8. Nahar, Habiba Lilun, 2024. "Addressing the silence: A study on the underreporting of sexual violence among female garment workers in Bangladesh," GLU Working Papers 64, Global Labour University (GLU).
    9. Amanda M. Grittner & Matthew S. Johnson, 2021. "When Labor Enforcement and Immigration Enforcement Collide: Deterring Worker Complaints Worsens Workplace Safety," Upjohn Working Papers 21-353, W.E. Upjohn Institute for Employment Research.
    10. Collis, Manuela R. & Van Effenterre, Clémentine, 2025. "Workplace Hostility," IZA Discussion Papers 18302, IZA Network @ LISER.
    11. Laura Boudreau & Sylvain Chassang & Ada González-Torre & Rachel Heath, 2023. "Monitoring Harassment in Organizations," Working Papers 2022-19, Princeton University. Economics Department..
    12. Serra-Sastre, Victoria, 2024. "Workplace violence and intention to quit in the English NHS," Social Science & Medicine, Elsevier, vol. 340(C).
    13. Alessandra Casarico & Irene Ferrari & Caterina Pavese, 2025. "Rebalancing Power Asymmetries Within Firms: Evidence from Illegal Resignations," CESifo Working Paper Series 11805, CESifo.
    14. Rainer Widmann & Michael E. Rose & Marina Chugunova, 2023. "Allegations of Sexual Misconduct, Accused Scientists, and Their Research," Rationality and Competition Discussion Paper Series 419, CRC TRR 190 Rationality and Competition.
    15. Coly, Caroline & Suteau, Margaux, 2025. "The economic effects of sexual harassment in the workplace," LSE Research Online Documents on Economics 127729, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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