Competition, Takeovers and Gender Discrimination

44 Pages Posted: 20 Aug 2008

See all articles by Fredrik Heyman

Fredrik Heyman

Research Institute of Industrial Economics (IFN)

Helena Svaleryd

Uppsala University

Jonas Vlachos

Stockholm University - Department of Economics; Research Institute of Industrial Economics (IFN)

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Date Written: June 2008

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 Classification: J2, J31, J7

Suggested Citation

Heyman, Fredrik and Svaleryd, Helena and Vlachos, Jonas, Competition, Takeovers and Gender Discrimination (June 2008). CEPR Discussion Paper No. DP6879, Available at SSRN: https://ssrn.com/abstract=1240189

Fredrik Heyman (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://https://www.ifn.se/eng/people/research-faculty/fredrikh_1

Helena Svaleryd

Uppsala University ( email )

P.O. Box 513
Uppsala, 75120
Sweden

Jonas Vlachos

Stockholm University - Department of Economics ( email )

Stockholm, 10691
Sweden

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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