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Product market competition and gender discrimination

Author

Listed:
  • Dudley Cooke

    (University of Exeter)

  • Ana P. Fernandes

    (University of Exeter)

  • Priscila Ferreira

    (University of Minho, NIMA)

Abstract
This paper presents novel empirical evidence for the prediction from Becker’s (1957) famous theory, that competition will drive discrimination out of the market. We use a comprehensive firm entry deregulation reform in Portugal as a quasi-natural experiment to study the effect of increased product market competition on gender discrimination. We use employer-employee data for the universe of private sector firms and workers, and exploit the staggered implementation of the reform across municipalities for identification. Increased competition following the deregulation reduces the gender pay gap for medium- and high-skill workers but not for the low-skilled. The gender pay gap is also reduced for workers in managerial positions, except for the CEO. We also find that the share of females in managerial positions increased in affected municipalities. Existing evidence has shown that gender discrimination reduces output; our findings suggest that deregulation can contribute to reduce inefficiencies arising from gender discrimination.

Suggested Citation

  • Dudley Cooke & Ana P. Fernandes & Priscila Ferreira, 2018. "Product market competition and gender discrimination," GEE Papers 00105, Gabinete de Estratégia e Estudos, Ministério da Economia, revised May 2018.
    • Handle: RePEc:mde:wpaper:0105
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    File URL: https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_105.pdf
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    References listed on IDEAS

    as
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    Cited by:

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    2. Liu, Haiming & Liang, Quanxi & Ling, Leng, 2022. "Underrepresentation of female CEOs in China: The role of culture, market forces, and foreign experience of directors," Research in International Business and Finance, Elsevier, vol. 63(C).
    3. Ruzzier, Christian A. & Woo, Marcelo D., 2023. "Discrimination with inaccurate beliefs and confirmation bias," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 379-390.
    4. Amin,Mohammad & Islam,Asif Mohammed, 2022. "The Impact of Paid Maternity Leave on Women’s Employment : Evidence Using Firm-LevelSurvey Data from Developing Countries," Policy Research Working Paper Series 10188, The World Bank.
    5. Fernandes, Ana P. & Ferreira, Priscila, 2021. "Executives’ gender pay gap and financing constraints," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 381-404.
    6. Pierre‐Richard Agénor & Kamer K. Ozdemir & Emmanuel Pinto Moreira, 2021. "Gender Gaps in the Labour Market and Economic Growth," Economica, London School of Economics and Political Science, vol. 88(350), pages 235-270, April.

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    More about this item

    Keywords

    Deregulation; Discrimination; Entry; Gender Pay Gap; Product Market Competition; Wage Structure.;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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