Compensating Differentials for Sexual Harassment
American Economic Review Papers and Proceedings, May 2011
12 Pages Posted: 20 Jan 2011
Date Written: January 14, 2011
Workplace sexual harassment is illegal, but many workers report that they have been sexually harassed. Exposure to the risk of sexual harassment may decrease productivity, which would reduce wages. Alternatively, workers may receive a compensating differential for exposure to sexual harassment, which would increase wages. Data on claims of sexual harassment filed with the Equal Employment Opportunity Commission are used to calculate the first measures of sexual harassment risks by industry, age group, and sex. Female workers face far higher sexual harassment risks. On balance, workers receive a compensating wage differential for exposure to the risk of sexual harassment.
Keywords: sexual harassment, compensating differentials
JEL Classification: J3, J7, K31
Suggested Citation: Suggested Citation