Sexual harassment leads to economic inequality

Abstract

This study examines sexual and gender-based harassment by employees and managers in the Swedish labour market. Using data from the work Environment Survey, we show that women are subjected to this kind of harassment to a greater extent than men, but that both men and women are more vulnerable than the opposite sex when they are in the minority in their workplace. As wages are generally higher in male-dominated workplaces, this means that women are more vulnerable to harassment in workplaces with high wages, and men in workplaces with low wages. The study finds evidence that these patterns increase economic inequality in two ways. First, one survey experiment shows that harassment discourages women and men from seeking employment where their gender is in the minority. Secondly, an analysis of how people switch workplaces over time shows that harassment leads to women leaving relatively well-paid workplaces with a large proportion of men, in favour of lower-paid workplaces with fewer male colleagues.