Open AccessThe Intangible Gender Gap: An Asset Channel of Inequality
Author(s) -
Carlos F. Avenancio-León,
Leslie Sheng Shen
Publication year - 2021
Publication title -
international finance discussion papers
Language(s) - English
Resource type - Journals
eISSN - 2767-4509
pISSN - 1073-2500
DOI - 10.17016/ifdp.2021.1322
Subject(s) - asset (computer security) , inequality , gender gap , sorting , intangible asset , channel (broadcasting) , labour economics , upstream (networking) , affect (linguistics) , business , gender pay gap , economics , demographic economics , monetary economics , finance , telecommunications , mathematical analysis , linguistics , philosophy , computer security , mathematics , computer science , wage , programming language
We propose an "asset channel of inequality" that contributes to gender inequities. We establish that industries with low (high) gender pay gaps have high (low) shares of tangible assets. Because asset tangibility determines firms' ability to collateralize assets and borrow, credit conditions affect industries differently. We show that credit expansions further reduce the pay gap in low-pay-gap industries while leaving it unaffected in high-pay-gap industries, making low-pay-gap industries more appealing for women. Consequently, gender sorting across industries increases, which then cements gender roles and accentuates workplace gender bias. Ultimately, credit expansions help women "swim upstream" but also reinforce glass ceilings.