Pursuing equal pay for equal work: Gender diversity in management positions and the gender pay gap throughout the wage distribution

Despite the massive incorporation of women into the labor market, equal pay for equal work remains a challenge. This article analyzes the influence of gender diversity in management positions on the gender wage gap (GWG) throughout the entire pay scale in Spain. The results show the existence of a GWG, particularly for wages below the average; though it decreases when female participation in management is higher. This is in line with the reduction of information asymmetry problems considered in statistical discrimination theories, which explain the barriers to promotion associated with dynamics at entry-level and low-qualified positions. JEL CLASSIFICATION: C31, J31, J71, M14

Automated summary

Despite the increase in women in the labor market, equal pay for equal work remains a challenge, as shown in the study on Spain's gender wage gap (GWG) and its relationship to gender diversity in management positions. The results suggest that the GWG decreases with higher female participation in management, potentially due to reduced information asymmetry and barriers to promotion associated with entry-level and low-qualified positions.