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An Economic Theory of Glass Ceiling

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  • Paul A. Grout
  • In-Uck Park
  • Silvia Sonderegger

Abstract

In the 'glass ceiling' debate there appear to be two strongly held and opposing interpretations of the evidence, one suggesting it is really the result of gender differences and the other that there is discrimination by gender. This paper provides an economic theory of the glass ceiling and one of the main insights of our analysis is that in some real sense these two interpretations are not in conflict with each other. The glass ceiling emerges as an equilibrium phenomenon when firms compete à la Bertrand even though employers know that offering women the same contract as men would be sufficient to erase all differences among promoted workers. The model also provides new insights into anti-discrimination policy measures. (Updated from working paper 07/183)

Suggested Citation

  • Paul A. Grout & In-Uck Park & Silvia Sonderegger, 2009. "An Economic Theory of Glass Ceiling," The Centre for Market and Public Organisation 09/227, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:09/227
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    Cited by:

    1. David W. Johnston & Wang-Sheng Lee, 2012. "Climbing the Job Ladder: New Evidence of Gender Inequity," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 129-151, January.
    2. Mª Genoveva Dancausa Millán & Mª Genoveva Millán Vázquez de la Torre & Ricardo Hernández Rojas & Juan Antonio Jimber del Río, 2021. "The Spanish Labor Market: A Gender Approach," IJERPH, MDPI, vol. 18(5), pages 1-22, March.

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    More about this item

    Keywords

    glass ceilings; promotions; career options;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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