Why Are There So Few Female Top Executives in Egalitarian Welfare States?
AbstractWe identify pertinent institutions governing the structure of payoffs with regard to female career progression. Drawing on recent insights in behavioral economics, we hypothesize that interactions between psychological mechanisms and the institutional setup may be important determinants of cross-country differences in the level and evolution of female representation in executive positions in the business sector. We test this proposition informally by exploring whether it can be used to account for some of the observed differences between the Anglo-Saxon and Scandinavian countries in this respect. Three particularly important conclusions emerge: (i) broad welfare state policy promotes high female labor force participation, but blunts incentives to pursue top executive positions in the business sector; (ii) therefore, it is likely to be misleading to use the share of female executives as a proxy for gender equality in welfare states; and (iii) psychological mechanisms are likely to amplify the effects of policies and institutions.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 786.
Length: 31 pages
Date of creation: 21 Jan 2009
Date of revision:
Publication status: Published in The Independent Review, 2009, pages 239-270.
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Career choice; Career incentives; Gender equality; Parental leave; Household production;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
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