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An empirical analysis of gender differences in asymmetric labor adjustment: evidence from Korea

Author

Listed:
  • Meeok Cho

    (Kyung Hee University)

  • Jiwon Hyeon

    (Seoul National University of Science and Technology)

  • Woo-Jong Lee

    (Seoul National University)

  • Hee-Yeon Sunwoo

    (Sejong University)

Abstract

This paper documents the difference in asymmetric labor adjustment between male and female employees, as alluded to in the labor economics literature. Based on detailed gender-specific employment disclosures of Korean-listed firms, we report a significant presence of labor cost stickiness. Breaking labor costs down, we further show that labor cost stickiness is mainly attributable to the asymmetric adjustment of employment rather than that of wages. More importantly, this adjustment is more salient for males than it is for females, suggesting that managers tend to dismiss females to a greater extent than males during sales downturns than they recruit during sales upturns. In cross-sectional analyses, we present evidence that formal and informal institutions underlie the asymmetric labor adjustment. Lastly, gender differences in asymmetric labor adjustment widen the tenure gap across gender, which may contribute to the low likelihood of firms appointing and promoting female executives.

Suggested Citation

  • Meeok Cho & Jiwon Hyeon & Woo-Jong Lee & Hee-Yeon Sunwoo, 2025. "An empirical analysis of gender differences in asymmetric labor adjustment: evidence from Korea," Review of Accounting Studies, Springer, vol. 30(2), pages 1716-1752, June.
    • Handle: RePEc:spr:reaccs:v:30:y:2025:i:2:d:10.1007_s11142-024-09859-z
    DOI: 10.1007/s11142-024-09859-z
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    More about this item

    Keywords

    Labor adjustment; Gender difference; Glass ceiling;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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