New workplace practices and the gender wage gap

Abstract

We explore the effect of introducing new workplace practices on the gender gap using a unique 1999 survey on work and compensation practices of Danish private sector firms merged to a large matched employer-employee database. Self-managed teams, project organisation and job rotation schemes are the most widely implemented work practices. Wage gains from adopting new workplace practices accrue mainly to hourly paid males and salaried females but do not generate large changes in the gender gap in pay at the level of the firm. Considering practices individually, however, the gender wage gap among salaried workers is significantly reduced in firms which offer job rotation and project organisation, while among hourly paid workers the use of quality control circles significantly widens the gap in pay between male and female workers.new work practices; employer-employee data; wage differentials; gender