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Employee Discrimination against Female Executives

Author

Listed:
  • Kodama, Naomi
  • Odaki, Kazuhiko

Abstract

The theory of employee discrimination gives a possible explanation for the scarcity of female executive officers. This paper tests the employee discrimination hypothesis by measuring the wage premium received by employees working with female executives against their tastes for discrimination. Using a fixed effects analysis of establishment-level panel data on Japanese employees, we separate the discrimination premiums that would otherwise cause a bias from the establishment-level unobserved productivity and unobserved employee characteristics by gender of executives. Our findings reveal that both male and female employees receive small but significant wage premiums (0.6-0.9 percent) when working for female executives.

Suggested Citation

  • Kodama, Naomi & Odaki, Kazuhiko, 2013. "Employee Discrimination against Female Executives," CIS Discussion paper series 611, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:cisdps:611
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/26001/1/DP611.pdf
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    References listed on IDEAS

    as
    1. Paul Frijters, 2003. "Testing for Employee Discrimination using Matched Employer-Employee Data: Theory and Evidence," Paul Frijters Discussion Papers 2003-1, School of Economics and Finance, Queensland University of Technology.
    2. Elaine McCrate, 2005. "Flexible Hours, Workplace Authority, And Compensating Wage Differentials In The Us," Feminist Economics, Taylor & Francis Journals, vol. 11(1), pages 11-39.
    3. Colin P. Green & John S. Heywood, 2011. "Flexible Contracts And Subjective Well‐Being," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 716-729, July.
    4. Ehrenberg, Ronald G & Schumann, Paul L, 1984. "Compensating Wage Differentials for Mandatory Overtime?," Economic Inquiry, Western Economic Association International, vol. 22(4), pages 460-478, October.
    5. Usui, Emiko, 2008. "Job satisfaction and the gender composition of jobs," Economics Letters, Elsevier, vol. 99(1), pages 23-26, April.
    6. Buffum, David & Whaples, Robert, 1995. "Fear and Lathing in the Michigan Furniture Industry: Employee-Based Discrimination a Century Ago," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 234-252, April.
    7. James F. Ragan & Carol Horton Tremblay, 1988. "Testing for Employee Discrimination by Race and Sex," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 123-137.
    8. Chiswick, Barry R, 1973. "Racial Discrimination in the Labor Market: A Test of Alternative Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1330-1352, Nov.-Dec..
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    employee discrimination; female executive; compensating wage differential;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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