The Economic Effects of Sexual Harassment in the Workplace

Abstract

This article discusses evidence on the economic costs of sexual harassment. We first review the available data sources that allow researchers to measure these costs. Next, we identify studies highlighting the effect of sexual harassment on occupational segregation, job turnover, wage penalties, productivity losses for companies, and female labour participation. In assessing the existing policies, we review the evidence on anti-harassment training, targeted enforcement, and diversity programmes and we find promising options for policymakers. Also we note that there are still some limitations from persisting sexist attitudes too. By discussing a novel survey experiment, we illustrate the importance of beliefs in sustaining cultures of harassment, while also being potential pathways for solutions. We conclude our review by suggesting that combining accountability measures with interventions to shift norms is crucial for much-needed cultural transformation across gender relations to eliminate sexual harassment.