Tech Industry

Competition, Takeovers And Gender Discrimination

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Executive Summary

Theories of taste-based discrimination predict that competitive pressures will drive discriminatory behavior out of the market. Using detailed matched employer-employee data, the author analyze how firm takeovers and product market competition affect firms' gender composition and gender wage gap. Taking into account several endogeneity concerns while using a difference-in-difference framework, they find that the share of female employees increases as a result of an ownership change, in particular when product market competition is weak. Furthermore, increased competition reduces the gender wage gap. While the estimated wage effect is quite small, the results support the main theoretical predictions.

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