Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177726
Authors: 
Bijkerk, Suzanne
Dominguez-Martinez, Silvia
Kamphorst, Jurjen
Swank, Otto H.
Year of Publication: 
2018
Series/Report no.: 
Tinbergen Institute Discussion Paper TI 2018-036/VII
Abstract: 
Under-representation of women in high level positions is widespread and persistent. We analyze the consequences of labor market quotas for the wages of women in high level positions. The key point of our paper is that quotas cause asymmetric information about why women work in high level positions. Firms know why they have assigned their own female employees to high level positions, but do not know why women at other firms have been assigned to those positions. A winner’s curse, reducing competition for women in high level positions, results. This widens the gender pay gap. We show that ex ante women are better-off without quotas. Next, we investigate how quotas affect incentives for employers to learn the abilities of women to make better job-assignment decisions. Then, under specific conditions women may benefit from quotas.
Subjects: 
labor market quota
winner s curse
screening
JEL: 
D83
J22
Document Type: 
Working Paper
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