Are Women Doing it for Themselves? Gender Segregation and the Gender Wage Gap

46 Pages Posted: 14 Oct 2019

See all articles by Nikolaos Theodoropoulos

Nikolaos Theodoropoulos

University of Cyprus

John Forth

National Institute of Economic and Social Research (NIESR)

Alex Bryson

UCL ; National Institute of Economic and Social Research (NIESR)

Abstract

Using matched employer-employee data from the 2004 and 2011 Workplace Employment Relations Surveys (WERS) for Britain we find a raw gender wage gap (GWG) in hourly wages of around 0.18-0.21 log points. The regression-adjusted gap is around half that. However, the GWG declines substantially with the increasing share of female managers in the workplace. The gap closes because women's wages rise with the share female managers in the workplace while men's wages fall. Panel and instrumental variables estimates suggest the share of female managers in the workplace has a causal impact in reducing the GWG. The role of female managers in closing the GWG is more pronounced when employees are paid for performance, consistent with the proposition that women are more likely to be paid equitably when managers have discretion in the way they reward performance and those managers are women. These findings suggest a stronger presence of women in managerial positions can help tackle the GWG.

Keywords: gender wage gap, female managers, performance pay

JEL Classification: J16, J31, M52, M54

Suggested Citation

Theodoropoulos, Nikolaos and Forth, John and Bryson, Alex, Are Women Doing it for Themselves? Gender Segregation and the Gender Wage Gap. IZA Discussion Paper No. 12657, Available at SSRN: https://ssrn.com/abstract=3468605

Nikolaos Theodoropoulos (Contact Author)

University of Cyprus ( email )

CY-1678 Nicosia
Nicosia, Nicosia P.O. Box 2
Cyprus

John Forth

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London SW1P 3HE
United Kingdom

Alex Bryson

UCL ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

HOME PAGE: http://https://iris.ucl.ac.uk/iris/browse/profile?upi=ABRYS65

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

HOME PAGE: http://www.niesr.ac.uk/staff/staffdetail.php?StaffID=307

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