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Manager impartiality? Worker-firm matching and the gender wage gap

  • Hensvik, Lena

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

This paper examines whether women benefit from working under female management using Swedish matched employer-employee panel data. I account for unobserved heterogeneity among both workers and firms potentially correlated with manager gender. The results show a substantial negative and statistically significant correlation between the proportion of female managers and the establishment’s gender wage gap. However, estimates that account for sorting on unobserved worker skills do not support that that managers favor same-sex workers in wage setting. Additional results show female-led organizations recruit more non-managerial, high-wage women but this is primarily due to (unobserved) firm attributes rather than gender-specific management practices.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:22.

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Length: 40 pages
Date of creation: 30 Nov 2011
Date of revision:
Publication status: Published as Hensvik, Lena, 'Manager impartiality? Worker-firm matching and the gender wage gap' in Industrial and Labor Relations Review, 2014, pages 395-421.
Handle: RePEc:hhs:ifauwp:2011_022
Contact details of provider: Postal:
IFAU, P O Box 513, SE-751 20 Uppsala, Sweden

Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
Web page: http://www.ifau.se/
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  1. Olof Åslund & Lena Hensvik & Oskar Nordström Skans, 2014. "Seeking Similarity: How Immigrants and Natives Manage in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 405 - 441.
  2. Claudia Goldin, 2002. "A Pollution Theory of Discrimination: Male and Female Differences in Occupations and Earnings," NBER Working Papers 8985, National Bureau of Economic Research, Inc.
  3. Laura Giuliano & David I. Levine & Jonathon Leonard, 2006. "Manager Race and the Race of New Hires," Working Papers 0722, University of Miami, Department of Economics.
  4. Carlsson, Mikael & Messina, Julián & Nordström Skans, Oskar, 2011. "Wage Adjustment and Productivity Shocks," Working Paper Series 253, Sveriges Riksbank (Central Bank of Sweden).
  5. Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  6. Susan Athey, 1998. "Mentoring and Diversity," Working papers 98-2, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2008. "Social Connections and Incentives in the Workplace: Evidence from Personnel Data," IZA Discussion Papers 3917, Institute for the Study of Labor (IZA).
  8. Francine D. Blau & Janet M. Currie & Rachel T. A. Croson & Donna K. Ginther, 2010. "Can Mentoring Help Female Assistant Professors? Interim Results from a Randomized Trial," American Economic Review, American Economic Association, vol. 100(2), pages 348-52, May.
  9. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-55, July.
  10. Nick Bloom & Tobias Kretschmer & John Van Reenen, 2011. "Are family-friendly workplace practices a valuable firm resource?," LSE Research Online Documents on Economics 33892, London School of Economics and Political Science, LSE Library.
  11. Manuel F. Bagues & Berta Esteve-Volart, 2010. "Can Gender Parity Break the Glass Ceiling? Evidence from a Repeated Randomized Experiment," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1301-1328.
  12. Nabanita Datta Gupta & Ronald L. Oaxaca & Nina Smith, 2006. "Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Progress in the United States and Denmark," ILR Review, Cornell University, ILR School, vol. 59(2), pages 243-266, January.
  13. Illoong Kwon & Eva M. Meyersson Milgrom, 2007. "Status, Relative Pay, and Wage Growth: Evidence from M&A," Discussion Papers 07-026, Stanford Institute for Economic Policy Research.
  14. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
  15. Cobb-Clark, D., 1998. "Getting Ahead: the Determinants of and Payoffs to Internal Promotion for Young Men and Women," CEPR Discussion Papers 395, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  16. Oskar Nordström Skans & Per-Anders Edin & Bertil Holmlund, 2007. "Wage dispersion between and within plants: Sweden 1985-2000," NBER Working Papers 13021, National Bureau of Economic Research, Inc.
  17. Ana Rute Cardoso & Rudolf Winter-Ebmer, 2010. "Female-Led Firms and Gender Wage Policies," ILR Review, Cornell University, ILR School, vol. 64(1), pages 143-163, October.
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