Female Managers and the Gender Wage Gap in Sweden

Abstract: This thesis analyzes the relation between female representation in private sector decision-making positions and the two predicted variables: the gender wage gap and the average female private-sector wage. Using regional data for Sweden’s 290 municipalities during the year 2014- 2018, OLS and panel fixed effect regression analysis is performed. A gender wage gap exists in all of Sweden’s municipalities. It is found that an increase in the representation of female decision-makers in the private sector significantly adds to the narrowing of the gender wage gap. The relation between female representation in private sector decision-making and average female wages is not found significant. Municipalities can use these findings as motivations for the importance of promoting female managers and when working to reduce the stigma and social norms surrounding females in decision-making positions.