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Does Gender Equality in Managerial Positions Improve the Gender Wage Gap? Comparative Evidence from Europe

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  • Lidia de Castro Romero

    (Department of Applied Economic I, Faculty of Economics and Business Sciences, Rey Juan Carlos University, 28032 Madrid, Spain)

  • Víctor Martín Barroso

    (Department of Applied Economic I, Faculty of Economics and Business Sciences, Rey Juan Carlos University, 28032 Madrid, Spain)

  • Rosa Santero-Sánchez

    (Department of Applied Economic I, Faculty of Economics and Business Sciences, Rey Juan Carlos University, 28032 Madrid, Spain)

Abstract

In this paper, we analyse the impact of gender equality in managerial positions on wages and the gender wage gap in 22 European countries. We draw on the employer–employee microdata from the European Structure of Earnings Survey (E-SES) for the year 2018, which allows us to include firm fixed effects in our econometric specifications, thus controlling for both observed and unobserved heterogeneity at the firm level. The analysis is carried out not only at the mean but also across the wage distribution through unconditional quantile regressions. The results on the impact of gender equality in management on wages are mixed. However, we find that gender equality has a predominantly positive effect in the upper part of the wage distribution, and a negative effect in the middle and lower parts. The results on the impact on the gender wage gap show that in many cases, a more gender-equal management reduces the gender wage gap. Furthermore, gender equality in management reduces the gender wage gap mainly in the middle and lower part of the wage distribution.

Suggested Citation

  • Lidia de Castro Romero & Víctor Martín Barroso & Rosa Santero-Sánchez, 2023. "Does Gender Equality in Managerial Positions Improve the Gender Wage Gap? Comparative Evidence from Europe," Economies, MDPI, vol. 11(12), pages 1-23, December.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:12:p:301-:d:1300449
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    References listed on IDEAS

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    1. Luca Flabbi & Mario Macis & Andrea Moro & Fabiano Schivardi, 2019. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," The Economic Journal, Royal Economic Society, vol. 129(622), pages 2390-2423.
    2. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    3. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2007. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wage Distribution," ILR Review, Cornell University, ILR School, vol. 60(2), pages 163-186, January.
    4. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2022. "Are Women Doing It for Themselves? Female Managers and the Gender Wage Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1329-1355, December.
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