Gender Differences within the Firm: Evidence from Two Million Travelers

31 Pages Posted: 10 Dec 2018

See all articles by Javier Donna

Javier Donna

Ohio State University (OSU) - Economics

Greg Veramendi

Arizona State University (ASU) - Economics Department

Date Written: August 6, 2018

Abstract

We document gender differences in the behavior of similar workers within a firm when they book business air travel. We show that women pay consistently less per ticket than men, after accounting for a large set of covariates that include the characteristics of the traveler, the routes and class they travel on, the firms that employ them, and the position that the traveler holds in the firm. A large proportion of the lower fares paid by women is explained by women booking flights earlier than men. We find significant variation in gender differences across the regions of the world. Using country-level data on preference differences, we show that gender differences in both positive and negative reciprocity are an important factor associated with the documented gender differences. In particular, negative reciprocity alone is able to explain the gender difference in paid fare: women (men) are less (more) willing to trade the firms’ money for their own utility when they feel they have been treated unfairly. The documented gender differences have both important monetary implications for firms and implications for the role of morale within the firm.

Keywords: Gender differences; worker gender differences

JEL Classification: D91, J16, F00, M50

Suggested Citation

Donna, Javier D. and Veramendi, Greg, Gender Differences within the Firm: Evidence from Two Million Travelers (August 6, 2018). Available at SSRN: https://ssrn.com/abstract=3285202 or http://dx.doi.org/10.2139/ssrn.3285202

Javier D. Donna (Contact Author)

Ohio State University (OSU) - Economics ( email )

410 Arps Hall
1945 N. High St.
Columbus, OH 43210-1172
United States

Greg Veramendi

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

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