An empirical analysis of gender differences in asymmetric labor adjustment: evidence from Korea

Meeok Cho (), Jiwon Hyeon (), Woo-Jong Lee () and Hee-Yeon Sunwoo ()
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Meeok Cho: Kyung Hee University
Jiwon Hyeon: Seoul National University of Science and Technology
Woo-Jong Lee: Seoul National University
Hee-Yeon Sunwoo: Sejong University

Review of Accounting Studies, 2025, vol. 30, issue 2, No 18, 1716-1752

Abstract: Abstract This paper documents the difference in asymmetric labor adjustment between male and female employees, as alluded to in the labor economics literature. Based on detailed gender-specific employment disclosures of Korean-listed firms, we report a significant presence of labor cost stickiness. Breaking labor costs down, we further show that labor cost stickiness is mainly attributable to the asymmetric adjustment of employment rather than that of wages. More importantly, this adjustment is more salient for males than it is for females, suggesting that managers tend to dismiss females to a greater extent than males during sales downturns than they recruit during sales upturns. In cross-sectional analyses, we present evidence that formal and informal institutions underlie the asymmetric labor adjustment. Lastly, gender differences in asymmetric labor adjustment widen the tenure gap across gender, which may contribute to the low likelihood of firms appointing and promoting female executives.

Keywords: Labor adjustment; Gender difference; Glass ceiling (search for similar items in EconPapers)
JEL-codes: J71 J82 M41 M51 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11142-024-09859-z

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