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Working Paper No. 1169

Gender Wage Gap at the Top, Job Inflexibility and Product Market Competition

Working Paper
Reference
Heyman, Fredrik, Pehr-Johan Norbäck and Lars Persson (2017). “Gender Wage Gap at the Top, Job Inflexibility and Product Market Competition”. IFN Working Paper No. 1169. Stockholm: Research Institute of Industrial Economics (IFN).

Authors
Fredrik Heyman, Pehr-Johan Norbäck, Lars Persson

Research show that women are disadvantaged in inflexible occupations. We show that this will imply that female managers are on average more skilled than male managers. Due to the higher hurdles faced by women, only the most skilled among them will pursue a management career. This implies that female managers will, on average, be more beneficial for the firm when product market competition is intense. Using detailed matched employee-employer data, we find that (i) more intense product market competition leads to relatively higher wages for female managers and (ii) the share of female managers is higher in firms in more competitive industries.

 

Pehr-Johan Norbäck

+46 (0)8 665 4522
+46 (0)73 574 3379
pehr-johan.norback@ifn.se