Gender And Dynamic Agency: Theory And Evidence On The Compensation Of Female Top Executives
AbstractSurvey and experimental evidence point to the existence of a pervasive set of culturally-related barriers. These include lack of mentoring and role models, exclusion from informal networks, gender based stereotyping, display of style different than the organizational norms, difficulties in engaging in negotiations and inhospitable corporate culture. Based on this evidence, we consider two alternative hypotheses regarding possible determinants of gender differences in the structure of compensation. The first hypothesis is that female executives have lower impact. Specifically, we allow for a lower effect of effort on the probability of high profits for female executives (probability-impact). Alternatively, we consider the case where for given effort, female executives give rise to higher volatility in firm profits (productivity-impact). The second hypothesis is that female executives have lower effectiveness - that is, they have a smaller role in the determination of a firm's profits, for a given impact of their effort. We find that the version of the model in which female executives have lower effectiveness is consistent with the observed gender differences in the structure of executive compensation. The version with lower impact fails to replicate, among the other things, the lower fraction of performance pay earned by female executives.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2007 Meeting Papers with number 894.
Date of creation: 2007
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
Other versions of this item:
- Stefania Albanesi & Claudia Olivetti, 2006. "Gender and Dynamic Agency: Theory and Evidence on the Compensation of Female Top Executives," Boston University - Department of Economics - Working Papers Series WP2006-061, Boston University - Department of Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kevin J. Murphy, 1986. "Incentives, Learning, and Compensation: A Theoretical and Empirical Investigation of Managerial Labor Contracts," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 59-76, Spring.
- Marianne Bertrand & Kevin F. Hallock, 2001.
"The Gender gap in top corporate jobs,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
- Marianne Bertrand & Kevin F. Hallock, 2000. "The Gender Gap in Top Corporate Jobs," NBER Working Papers 7931, National Bureau of Economic Research, Inc.
- Marianne Bertrand & Kevin Hallock, 1999. "The Gender Gap in Top Corporate Jobs," Working Papers 805, Princeton University, Department of Economics, Industrial Relations Section..
- Jensen, M.C. & Murphy, K.J., 1988.
"Performance Pay And Top Management Incentives,"
88-04, Rochester, Business - Managerial Economics Research Center.
- Wang, Cheng, 1997. "Incentives, CEO Compensation, and Shareholder Wealth in a Dynamic Agency Model," Journal of Economic Theory, Elsevier, vol. 76(1), pages 72-105, September.
- Stefania Albanesi & Claudia Olivetti, 2009. "Gender Roles and Medical Progress," NBER Working Papers 14873, National Bureau of Economic Research, Inc.
- George-Levi Gayle & Limor Golan & Robert Miller, .
"Are There Glass Ceilings for Female Executives?,"
GSIA Working Papers
2009-E8, Carnegie Mellon University, Tepper School of Business.
- Stijn Van Nieuwerburgh & Hanno Lustig, 2007.
"The Wealth-Consumption Ratio: A Litmus Test for Consumption-Based Asset Pricing Models,"
2007 Meeting Papers
398, Society for Economic Dynamics.
- Hanno Lustig, . "The Wealth-Consumption Ratio: A Litmus Test for Consumption-based Asset Pricing Models," UCLA Economics Online Papers 420, UCLA Department of Economics.
- Hanno Lustig & Stijn Van Nieuwerburg & Adrien Verdelhan, 2007. "The Wealth-Consumption Ratio: A Litmus Test for Consumption-based Asset Pricing Models¤," Boston University - Department of Economics - Working Papers Series WP2007-030, Boston University - Department of Economics.
- Christian Bredemeier & Falko Jüßen, 2009.
"Household Labor Supply and Home Services in a General-Equilibrium Model with Heterogeneous Agents,"
Ruhr Economic Papers
0091, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Bredemeier, Christian & Juessen, Falko, 2009. "Household Labor Supply and Home Services in a General-Equilibrium Model with Heterogeneous Agents," IZA Discussion Papers 3944, Institute for the Study of Labor (IZA).
- Lalanne, Marie & Seabright, Paul, 2011.
"The Old Boy Network: Gender Differences in the Impact of Social Networks on Remuneration in Top Executive Jobs,"
IDEI Working Papers
689, Institut d'Économie Industrielle (IDEI), Toulouse.
- Lalanne, Marie & Seabright, Paul, 2011. "The Old Boy Network: Gender Differences in the Impact of Social Networks on Remuneration in Top Executive Jobs," CEPR Discussion Papers 8623, C.E.P.R. Discussion Papers.
- Lalanne, Marie & Seabright, Paul, 2011. "The Old Boy Network: Gender Differences in the Impact of Social Networks on Remuneration in Top Executive Jobs," TSE Working Papers 11-259, Toulouse School of Economics (TSE).
- Stefania Albanesi & Claudia Olivetti, 2009.
"Production, Market Production and the Gender Wage Gap: Incentives and Expectations,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 80-107, January.
- Stefania Albanesi & Claudia Olivetti, 2008. "Code and data files for "Home Production, Market Production and the Gender Wage Gap: Incentives and Expectations"," Computer Codes 06-236, Review of Economic Dynamics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.