Mentoring and Segregation: Female-Led Firms and Gender Wage Policies

Working Paper: CEPR ID: DP6618

Authors: Ana Rute Cardoso; Rudolf Winter-Ebmer

Abstract: We explore the impact of mentoring of females and gender segregation on wages using a large longitudinal data set for Portugal. Female managers can protect and mentor female employees by paying them higher wages than male-led firms would do. We find that females can enjoy higher wages in female-led firms, the opposite being true for males. In both cases is a higher share of females reducing the wage level. These results are compatible with a theory where job promotion is an important factor of wage increases: if more females are to be mentored, less promotion slots are available for males, but also the expected chance of a female to be promoted is lower.

Keywords: female entrepreneurs; gender gap; matched employer-employee data; wages

JEL Codes: D21; J16; J31; M52


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Female management (M54)Female wages (J31)
Female management (M54)Male wages (J31)
Higher share of female coworkers (J21)Female wages (J31)
Higher share of female coworkers (J21)Male wages (J31)
Female management (M54)Job promotion opportunities (J62)

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