Influence of female managers on gender wage gap and returns to cognitive and non-cognitive skills

Abstract

There is a modest but growing empirical body of evidence on the influence of managers' gender on the wages of their male and female subordinates. Most of these studies, however, suffer from a very raw approximation of the managers' gender by the share of women in charge, and often lack many important gender-specific personal characteristics, such as non-cognitive skills and life-work preferences, which can lead to biased results. This article copes with the mentioned deficiencies by employing a very rich and representative dataset of 1948 employees from the Czech Republic. It reveals surprising results as it shows that the gender of the manager has an effect on the level of wages, but not on the gender wage gap. It also shows that the gender of the manager and his/her subordinate has only a weak impact on the remuneration of an employee ' s non-cognitive skills and life-work preferences.