Compensating Differentials for Sexual Harassment

American Economic Review Papers and Proceedings, May 2011

Vanderbilt Law and Economics Research Paper No. 11-06

12 Pages Posted: 20 Jan 2011  

Joni Hersch

Vanderbilt University - Law School; IZA Institute of Labor Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - College of Arts and Science - Department of Economics

Date Written: January 14, 2011

Abstract

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

Hersch, Joni, Compensating Differentials for Sexual Harassment (January 14, 2011). American Economic Review Papers and Proceedings, May 2011; Vanderbilt Law and Economics Research Paper No. 11-06. Available at SSRN: https://ssrn.com/abstract=1743691

Joni Hersch (Contact Author)

Vanderbilt University - Law School ( email )

131 21st Avenue South
Nashville, TN 37203-1181
United States
615-343-7717 (Phone)
615-322-6631 (Fax)

HOME PAGE: http://law.vanderbilt.edu/go/phdlawecon

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Vanderbilt University - Owen Graduate School of Management

401 21st Avenue South
Nashville, TN 37203
United States

Vanderbilt University - College of Arts and Science - Department of Economics

Box 1819 Station B
Nashville, TN 37235
United States

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