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

  • Hensvik, Lena

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

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    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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    File URL: http://www.ifau.se/Upload/pdf/se/2011/wp11-22-Manager-impartiality-Worker-firm-matching-and-the-gender-wage-gap.pdf
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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. 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.
    2. Carlsson, Mikael & Messina, Julián & Nordström Skans, Oskar, 2011. "Wage adjustment and productivity shocks," Working Paper Series 2011:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. 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," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 243-266, January.
    4. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2009. "Social Connections and Incentives in the Workplace: Evidence From Personnel Data," Econometrica, Econometric Society, vol. 77(4), pages 1047-1094, 07.
    5. Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage Dispersion Between and Within Plants: Sweden 1985-2000," Working Paper Series 2006:18, Uppsala University, Department of Economics.
    6. Susan Athey & Christopher Avery & Peter Zemsky, 1998. "Mentoring and Diversity," NBER Working Papers 6496, National Bureau of Economic Research, Inc.
    7. Claudia Goldin, 2013. "A Pollution Theory of Discrimination: Male and Female Differences in Occupations and Earnings," NBER Chapters, in: Human Capital in History: The American Record, pages 313-348 National Bureau of Economic Research, Inc.
    8. 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.
    9. Weber, Andrea & Zulehner, Christine, 2009. "Female Hires and the Success of Start-up Firms," IZA Discussion Papers 4568, Institute for the Study of Labor (IZA).
    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. 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.
    12. Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2006. "Manager Race and the Race of New Hires," Institute for Research on Labor and Employment, Working Paper Series qt2cb2q1h1, Institute of Industrial Relations, UC Berkeley.
    13. Åslund, Olof & Hensvik, Lena & Nordström Skans, Oskar, 2009. "Seeking similarity: how immigrants and natives manage at the labor market," Working Paper Series 2009:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. 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.
    15. 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," NBER Working Papers 15707, National Bureau of Economic Research, Inc.
    16. 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.
    17. 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.
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