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The Gender Gap in Top Corporate Jobs

Author

Listed:
  • Marianne Bertrand

    (Princeton University and NBER)

  • Kevin F. Hallock

    (University of Illinois, Urbana-Champaign)

Abstract

This paper studies the gender compensation gap among high-level executives in US corpora- tions. We use the ExecuComp data set that contains information on total compensation for the top five highest paid executives of a large group of US firms over the period 1992-1997. About 2.5% of the executives in the sample are women. These women earn about 45% less than their male counterparts. As much as 75% of this gap can be accounted for by the fact that women manage smaller companies and are less likely to be CEO; Chair, or President of their company. The unexplained gender gap can be reduced to less than 5% when one further accounts for the fact that female executives are younger and have less seniority than male executives. Over the period under study, women have nearly tripled their participation in the top executive ranks and have also strongly improved their relative compensation, mostly by gaining representation into the larger corporations. While the absence of a significant conditional gender gap implies that women and men who hold similar jobs in firms of similar size receive fairly equal treatment in terms of compensation, it does not rule out the possibility of discrimination in terms of gender segregation or promotion.

Suggested Citation

  • Marianne Bertrand & Kevin F. Hallock, 1999. "The Gender Gap in Top Corporate Jobs," Working Papers 805, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:426
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    gender compensation gap; large corporation; discrimination;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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