Gender Discrimination and Firm Profit Efficiency:Evidence from Brazil

Wenjun Liu, Tomokazu Nomura and Shoji Nishijima
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Wenjun Liu: Graduate School of Economics, Kobe University

No 1019, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: In this study, we investigated discrimination against women within the Brazilian labor market using firm-level data and considering the proportion of female employees as a proxy for the extent of discrimination. Estimating the profit efficiency of firms using data envelopment analysis, and regressing it on the proportion of female employees and other firm characteristics, we found that the proportion of female employees is positively correlated with firm profit efficiency. Our finding indicates that firms employing a high proportion of female workers incur a lower labor cost while producing the same level of output compared to firms employing a low proportion of female employees, and provide strong evidence of the existence of discrimination against female employees within the Brazilian labor market.

Pages: 36pages
Date: 2011-03
New Economics Papers: this item is included in nep-bec, nep-eff and nep-lab
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