$MeToo: The Economic Cost of Sexual Harassment

$MeToo: The Economic Cost of Sexual Harassment
Level: beginner
Lynn Parramore
Institute for New Economic Thinking, 2018

In this article, Lynn Parramore discusses what sexual harassment is, where it happens and how to measure its costs. The author argues that beyond the expenses in providing sexual harassment training, legal settlements, and lawsuits, sexual harassment has indirect costs due to lower productivity, higher turnover and reputational harm regarding those affected, which are more difficult to measure. But, according to Parramore, the cultural shifts and new information appearing in connection with the #MeToo movement provide a golden opportunity for social scientists to illuminate the vast economic dimensions of a mammoth problem.

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