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When Harry Fired Sally: The Double Standard in Punishing Misconduct

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Listed:
  • Mark Egan
  • Gregor Matvos
  • Amit Seru

Abstract

We examine gender differences in misconduct punishment in the financial advisory industry. There is a “gender punishment gap”: following an incident of misconduct, female advisers are 20% more likely to lose their jobs and 30% less likely to find new jobs, relative to male advisers. The gender punishment gap is not driven by gender differences in occupation, productivity, nature of misconduct, or recidivism. The gap in hiring and firing dissipates at firms with a greater percentage of female managers and executives. We also explore the differential treatment of ethnic minority men and find similar patterns of “in-group” tolerance.

Suggested Citation

  • Mark Egan & Gregor Matvos & Amit Seru, 2022. "When Harry Fired Sally: The Double Standard in Punishing Misconduct," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1184-1248.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/718964
    DOI: 10.1086/718964
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    More about this item

    JEL classification:

    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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