Working Paper: CEPR ID: DP6879
Authors: Fredrik Heyman; Helena Svaleryd; Jonas Vlachos
Abstract: Theories of taste-based discrimination predict that competitive pressures will drive discriminatory behaviour out of the market. Using detailed matched employer-employee data, we analyze how firm takeovers and product market competition are related to the gender composition of the firm?s workforce and the gender wage gap. Using a difference-in-difference framework and dealing with several endogeneity concerns, we find that the share of female employees increases as a result of an ownership change, in particular when product market competition is weak. Further, increased competition reduces the gender wage gap, especially among highly educated employees. While the estimated wage effect is quite small, the results support the main theoretical predictions.
Keywords: competition; discrimination; takeovers; wages
JEL Codes: J2; J31; J7
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ownership change (R21) | female employee share (J21) |
| product market competition (L13) | gender wage gap (J31) |
| ownership change (R21) | gender wage gap (J31) |
| competition (L13) | female employee share (J21) |