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IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper examines whether women benefit from working under female management using Swedish matched employer-employee panel data. I account for unobserved heterogeneity among both workers and firms potentially correlated with manager gender. The results show a substantial negative and statistically significant correlation between the proportion of female managers and the establishment’s gender wage gap. However, estimates that account for sorting on unobserved worker skills do not support that that managers favor same-sex workers in wage setting. Additional results show female-led organizations recruit more non-managerial, high-wage women but this is primarily due to (unobserved) firm attributes rather than gender-specific management practices.

Keywords: Gender wage gap; managers; worker sorting

JEL-codes: J24; J31; J53

40 pages, November 30, 2011

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Lena Hensvik, (2014), 'Manager impartiality? Worker-firm matching and the gender wage gap', Industrial and Labor Relations Review, vol 67, no 2, pages 395-421

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