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The Effect of Female Managers on Gender Wage Differences

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  • Veronika Hedija

Abstract

The paper is devoted to gender wage differences; it especially focuses on the impact of the gender characteristics of the manager on gender wage disparity. Under the social identity theory, women in managerial positions, that can affect the wage of their subordinates, are likely to evaluate female employees better than male employees. The purpose of this paper is to investigate the effect of the gender characteristics of middle managers on the wages of directly subordinated rank-and-file employees using a variation within the firm. We have used two methods to consider the effect of the manager gender characteristics on subordinates: the estimation of the wage function and the average treatment effect on the treated, both supplemented by a matching procedure. We concluded that women in middle management in comparison to their male counterparts have a lower tendency to apply wage discrimination against women. The presence of a female head of department led to a decrease in the gender pay gap by almost 7 percentage points.

Suggested Citation

  • Veronika Hedija, 2015. "The Effect of Female Managers on Gender Wage Differences," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(1), pages 38-59.
    • Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:1:id:499:p:38-59
    DOI: 10.18267/j.pep.499
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    References listed on IDEAS

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    1. Stěpán Jurajda, 2005. "Gender Segregation and Wage Gap: An East-West Comparison," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 598-607, 04/05.
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    4. Marianne Bertrand & Kevin F. Hallock, 2001. "The Gender Gap in Top Corporate Jobs," ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    6. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    7. 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.
    8. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
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    More about this item

    Keywords

    wage differences; matching; labour market; gender pay gap; female managers; average treatment effect on the treated;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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