Women Managers and the Gender Wage Gap: Workgroup Gender Composition Matters

Abstract

Women's representation in managerial positions is a common metric for gender equity in organizations. Whether women managers improve gender equity among their subordinates is, however, less clear. Drawing on rich longitudinal personnel data from a large Korean food company, we provide new insight into this question by focusing attention on key micro-contexts for interaction and relational politics within organizations: workgroups. Building on social-psychological theories about in-group preference and value threats, we theorize that workgroup gender composition conditions the relationship between supervisor gender and gender earnings differentials. Results from regression models with workgroup fixed effects confirm this insight. Women supervisors are associated with smaller gender earnings gaps in workgroups when they are male-dominated. This relationship is stronger for less-advantaged workers, with supervisor gender and workgroup gender composition mattering more for “sticky floors” than “glass ceilings.”