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Who moves up the career ladder? A model of gender differences in job promotion

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  • Empar Pons Blasco

    ()
    (Universitat de València)

  • Luisa Escriche Bertolín

    (Universitat de València)

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    Abstract

    This paper presents an adverse selection model that contributes to explain why women are less likely to be promoted. There are two types of workers: family-committed and job-committed workers. The cost of job effort during the first period of the working life is higher for the former. Firms offer two types of contract, one involving high effort during the first period with promotion possibilities and the other requiring low effort but with no opportunity for promotion attached. We show that women are less likely to apply for jobs with promotion possibilities, but when they do, women are just as likely to succeed as men.

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2009-23.pdf
    File Function: Fisrt version / Primera version, 2009
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    Bibliographic Info

    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2009-23.

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    Length: 32 pages
    Date of creation: Sep 2009
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasad:2009-23

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    Related research

    Keywords: Gender Discrimination; Promotions; Asymmetric Information; Status Concerns;

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    1. Pudney, Stephen & Shields, Michael A, 2000. " Gender and Racial Discrimination in Pay and Promotion for NHS Nurses," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 801-35, Special I.
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    3. Luisa Escriche & Gonzalo Olcina & Rosario Sánchez, 2004. "Gender discrimination and intergenerational transmission of preferences," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 485-511, July.
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    6. Ransom, Michael R. & Oaxaca, Ronald L., 2003. "Intrafirm Mobility and Sex Differences in Pay," IZA Discussion Papers 704, Institute for the Study of Labor (IZA).
    7. Randall W. Eberts & Joe A. Stone, 1985. "Male-Female Differences in Promotions: EEO in Public Education," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 504-521.
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    9. Laura Giuliano & David I. Levine & Jonathon Leonard, 2006. "An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Working Papers 0721, University of Miami, Department of Economics.
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    11. Martin Menner, 2007. "The role of search frictions for output and inflation dynamics: a Bayesian assessment," Economics Working Papers we076235, Universidad Carlos III, Departamento de Economía.
    12. Lilia Maliar & Fernando Valli & Serguei Maliar, 2009. "Solving the incomplete markets model with aggregate uncertainty using the Krusell-Smith algorithm," Working Papers. Serie AD 2009-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    13. Alesina, Alberto & Giuliano, Paola, 2007. "The Power of the Family," IZA Discussion Papers 2750, Institute for the Study of Labor (IZA).
    14. Francine Blau & Jed DeVaro, 2006. "New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires," Working Papers 891, Princeton University, Department of Economics, Industrial Relations Section..
    15. Cobb-Clark, Deborah A., 2001. "Getting Ahead: The Determinants of and Payoffs to Internal Promotion for Young U.S. Men and Women," IZA Discussion Papers 288, Institute for the Study of Labor (IZA).
    16. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . ""Incorporating Concern for Relative Wealth into Economic Models''," CARESS Working Papres 95-14, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    17. Jones, David R & Makepeace, Gerald H, 1996. "Equal Worth, Equal Opportunities: Pay and Promotion in an Internal Labour Market," Economic Journal, Royal Economic Society, vol. 106(435), pages 401-09, March.
    18. Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, vol. 86(3), pages 329-48, June.
    19. Fershtman, Chaim & Hvide, Hans K & Weiss, Yoram, 2003. "Cultural Diversity, Status Concerns and the Organization of Work," CEPR Discussion Papers 3982, C.E.P.R. Discussion Papers.
    20. Antoni Cunyat & Randolph Sloof, 2008. "Employee Types and Endogenous Organizational Design," Tinbergen Institute Discussion Papers 08-019/1, Tinbergen Institute.
    21. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
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