Unintended consequences on gender diversity of high-tech growth and labor market polarization

There has been considerable media coverage highlighting the lack of gender diversity in Silicon Valley, stressing the relatively low participation of women in the high-tech economy. Austin offers a unique case for testing whether similar gender issues characterized other high-tech regions because the city has historically benefited from the expansion of Silicon Valley’s large high-tech firms since the 1980s. The gender-biased business practices identified in Silicon Valley firms may have been transferred to their branch plants in Austin. Our analysis shows women’s losses in middle-skill occupation employment shares were concentrated in the low-tech industry and were partially offset by job share gains in high-skill occupations in the same sector between 1980 and 2015. Men’s losses in middle-skill occupation job share were also mainly concentrated in the low-tech sector but were partially offset by employment share gains in high-skill occupations only in the high-tech industry during this period. Women made large gains in relative real median wages only in high-skill occupations in the high-tech industry while their relative real median wages in other skill occupations and in the low-tech industry stagnated around zero during this period. Men’s gains in relative median wages were also concentrated only in the high-tech industry but were less than half of women’s and were negative (between −10 and −21 percent) in other occupations in the high-tech industry and across all occupations in the low-tech industry. As noted in previous studies, the impact of job polarization is not well understood across sectors and gender. This study finds the high-tech industry in Austin has had unintended consequences in terms of job polarization across gender, providing relatively fewer job opportunities in high-skill occupations to women than men but offering much higher gains in relative real median wages to women than men. Males also found relatively more job opportunities in high-skill occupations in the high-tech industry than women but experienced only half of women’s gains in relative median wages in this industry between 1980 and 2015.