Cluster-Seminar Public Finances and Living Conditions

This paper analyzes the impact of women's managerial representation on the gender pay gap among subordinates on the establishment level using German Linked-Employer-Employee-Data. For identification of a causal effect we employ two estimation strategies: 1) a panel model with establishment fixed effects and 2) an event study estimation around a discrete shift in managerial representation. We find evidence for the women's share in management to decrease the gender pay gap in a panel fixed-effects model with the effect being larger for second- than first-level management. Preliminary results from the event study estimation, however, are not always consistent with this finding.