Gender Segregation in Small Firms

This paper studies interfirm gender segregation in a unique sample of small employers. It was found that interfirm segregation is prevalent among small employers, as men and women rarely work in fully integrated firms. It was also found that the education and sex of the business owner strongly influenced the sex composition of a firm's workforce. The authors estimate that interfirm segregation can account for up to 50 percent of the gender gap in annual earnings.