Insiders, Outsiders, and Involuntary Unemployment

Chen, Daniel L. and Sethi, Jasmin (2016) Insiders, Outsiders, and Involuntary Unemployment: Sexual Harrassment Exacerbates Gender Inequality. TSE Working Paper, n. 16-687

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Sexual harassment is perceived to be a major impediment to female labor force participation. We use the random assignment of U.S. federal judges setting geographically-local precedent, and the fact that judges’ biographies predict decisions in sexual harassment cases, to document the causal impact of forbidding sexual harassment. Consistent with an insider-outsider theory of involuntary unemployment, but in contrast to a mandated benefits theory of employment protections, pro-plaintiff sexual harassment precedent spurred the adoption of sexual harassment human resources policies, encouraged entry of outsiders, and reduced gender inequality in labor supply and wages among the population. These effects were comparable to the effects of the Equal Employment Opportunity Act and greatest in the construction industry, which was heavily affected by sexual harassment litigation.

Item Type: Monograph (Working Paper)
Sub-title: Sexual Harrassment Exacerbates Gender Inequality
Language: English
Date: August 2016
Uncontrolled Keywords: Gender discrimination, microaggression, trauma, safe spaces, prejudice
JEL Classification: J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J71 - Discrimination
J81 - Working Conditions
J83 - Workers' Rights
K31 - Labor Law
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 01 Sep 2016 09:57
Last Modified: 08 Oct 2019 23:01
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