Sexual harassment in the workplace Updated

The #MeToo movement brought heightened attention to sexual harassment and a search for new approaches to combat it

Vanderbilt University, USA, and IZA, Germany

one-pager full article

Elevator pitch

Workplace sexual harassment is internationally condemned as sex discrimination and a violation of human rights, and more than 140 countries have enacted legislation prohibiting it. Sexual harassment increases absenteeism and turnover and lowers productivity and job satisfaction. Yet, it remains pervasive and underreported, as the #MeToo movement starkly revealed in October 2017. Standard workplace policies such as training and a complaints process have proven inadequate. Initiatives such as bans on confidential settlements and measures that support market incentives for deterrence may offer the most promise.

illustration p.1

Key findings

Pros

Largely overlooked until the 1970s, sexual harassment in the workplace is now internationally condemned as a form of sex discrimination and a violation of human rights.

More than 140 countries have legislation prohibiting workplace sexual harassment.

Legislation varies by country and includes protection against workplace sexual harassment under both civil and criminal law.

Like workers at risk of injury or death, those at risk of sexual harassment receive a pay premium.

Bans on confidential settlements show promise by incentivizing firms to deter harassment in order to avoid reputational damage.

Cons

Sexual harassment is difficult to define, measure, and monitor, and estimates of prevalence range widely.

Sexual harassment is costly to its targets and to the organizations in which it occurs.

There is limited empirical evidence on the efficacy of legislative and workplace policies in reducing workplace sexual harassment.

Sexual harassment is underreported, which reduces the efficacy of legislation and workplace policies prohibiting it, as these policies depend on reporting to discourage harassment.

Costs to organizations may be too low for deterrence due to confidential settlements, low caps on damages awards, and insurer coverage of damages awards.

Author's main message

Sexual harassment, a violation of human rights and a form of sex discrimination, is costly to workers and organizations. Yet it remains pervasive and underreported. Legislation and organizational policies have been insufficient to eradicate workplace sexual harassment. Success may require policies to enhance market and legal incentives by raising the costs to organizations of tolerating an adverse work environment. Promising measures include banning confidential settlements so that harassing firms and individuals risk reputational harm, raising caps on damages awards, denial of coverage by insurers of willful illegal acts, and a complaints process that protects workers from retaliation.

Full citation

Full citation

Data source(s)

Data type(s)

Method(s)

Countries