Insiders, Outsiders, and Involuntary Unemployment: Sexual Harassment Exacerbates Gender Inequality

TSE Working Paper No. 16-687

42 Pages Posted: 9 Mar 2017 Last revised: 25 Dec 2018

See all articles by Daniel L. Chen

Daniel L. Chen

Directeur de Recherche, Centre National de la Recherche Scientifique, Toulouse School of Economics, Institute for Advanced Study in Toulouse, University of Toulouse Capitole, Toulouse, France

Jasmin K. Sethi

University of Toulouse 1 - Toulouse School of Economics Institute for Advanced Studies/Harvard Law School LWP

Date Written: November 19, 2018

Abstract

Is labor market gender inequality due to physiological differences, labor market choices, or discrim- ination? Using novel data on all workplace sexual harassment appellate precedent from 1982-2002 and randomly assigned judges, we find that pro-plaintiff sexual harassment precedent reduced gender inequality and spurred the adoption of sexual harassment human resources policies. The effects were comparable to the Equal Employment Opportunity Act’s impact on black employment share, greatest in the heavily-litigated construction industry and where male sexism was highest, and explains one-third of the adoption of sexual harassment human resources policies. Our results are consistent with an insider-outsider theory of involuntary unemployment.






Keywords: gender discrimination, microaggression, trauma, safe spaces, prejudice

JEL Classification: J81, J83, K31, J31, J71

Suggested Citation

Chen, Daniel L. and Sethi, Jasmin K., Insiders, Outsiders, and Involuntary Unemployment: Sexual Harassment Exacerbates Gender Inequality (November 19, 2018). TSE Working Paper No. 16-687. Available at SSRN: https://ssrn.com/abstract=2928781

Daniel L. Chen (Contact Author)

Directeur de Recherche, Centre National de la Recherche Scientifique, Toulouse School of Economics, Institute for Advanced Study in Toulouse, University of Toulouse Capitole, Toulouse, France ( email )

21 allée de Brienne
31015 Toulouse cedex 6 France
Toulouse, 31015
France

Jasmin K. Sethi

University of Toulouse 1 - Toulouse School of Economics Institute for Advanced Studies/Harvard Law School LWP ( email )

21 allée de Brienne
31015 Toulouse cedex 6 France
Toulouse, 31015
France

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