Compensating Differentials for Sexual Harassment

Article OPEN
Joni Hersch (2011)
  • Journal: American Economic Review, volume 101, issue 3 May, pages 630-34
  • Related identifiers: doi: 10.1257/aer.101.3.630
  • Subject:
    mesheuropmc: health care economics and organizations

Workplace sexual harassment is illegal, but many workers report that they have been sexually harassed. Exposure to the risk of sexual harassment may decrease productivity, which would reduce wages. Alternatively, workers may receive a compensating differential for exposure to sexual harassment, which would increase wages. Data on claims of sexual harassment filed with the Equal Employment Opportunity Commission are used to calculate the first measures of sexual harassment risks by industry, age group, and sex. Female workers face far higher sexual harassment risks. On balance, workers receive a compensating wage differential for exposure to the risk of sexual harassment.
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