The Proportion of Females in the Establishment: Discrimination, Preferences and Technology

This paper examines determinants of the proportion of females in the establishment as this variable can affect the male- female wage gap in an important way. Our search for the determinants is guided by two views of the labour market, namely discrimination and coincidence of needs between firms and workers. Results suggest that establishments have higher proportion of females when employment is higher during the school year and employment turnover is higher; the more stable the demand for the output; the higher the proportion of white collar employees; and the smaller the local labour market. This suggests that public policy based on one view of how the labour market works may produce unintended results that will not necessarily improve the welfare of the very groups targeted.