This article analyzes wage differences according to whether or not employees and their supervisors are of the same sex. The mechanism of homophily predicts that having supervisors of the same sex has a positive effect on wages. Additionally, we introduce four conflicting theories that consider group composition as a moderating factor. The hypotheses are tested with data from the Bavarian Graduate Panel via fixed-effect panel regressions. Results show that relative group sizes must be considered in order to see wage differences. These wage benefits emerge in minority and majority groups for male academics, but women earn less in majority groups when their supervisor is of the same sex.Homophily: refers to the tendency for people to have (non-negative) ties with people who are similar to themselves in socially significant ways.
As always keep in mind that this is only one study.
