Testing the Taste-Based Discrimination Hypothesis: Evidence from Data on Japanese Listed Firms  

Oleh:

Sano, Shinpei

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Japan Labor Review vol. 6 no. 1 (2009), page 36-50.
Topik: Taste Brand; Discrimination Hypothesis; Evidence; Japanese Listed Firms

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ134.5 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Using the "market test" methodology, we examine the employer discrimination theory. We use a set of data on Japanese listed firms which has detailed employee information. The "market test" is the methodology to demonstrate the causes of the differential wages, verifying the significance of the correlative profit and the number of female employee added. Existing literature does not control the factors which affect firms' profits, such as employees' age distribution and the share of married female employees. Unique Japanese firm level panel data enable us to estimate a more efficient estimator than the previous research. We find that (i) estimation results indicate that an increase in the proportion of female workers increases the profit; (ii) a high proportion of female workers has a strong effect in concentrated industries. These results support the employer discrimination hypothesis. Next, we examine how firms with a high female proportion grow faster in more competitive industries. This is the long-run implication of the employer discrimination theory. As a result, adding a larger number of female employees does not seem to contribute to growth of companies in a competitive market environment.

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