What institutional characteristics determine and mitigate gender inequality in the workplace? An empirical analysis of Japanese firms

Abstract

The purpose of this study is to clarify why gender inequality in the workplace has remained intractable and how it will be mitigated in Japanese firms. To this end, we analyze gender inequality in the workplace and its mitigation in terms of institutional characteristics (i.e., the Japanese employment system and its institutional complementarity with corporate governance, as well as the Sustainable Development Goals), using data on Japanese firms listed on the first section of the Tokyo Stock Exchange in 2019. Our findings reveal that these institutional factors influence gender (in)equality in the workplace by balancing the interdependent social and economic values of firms to maximize their overall value.