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The role of employer learning and regulatory interventions in mitigating executive gender pay gap

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  • Homroy, Swarnodeep
  • Mukherjee, Shibashish

Abstract

This paper examines the role of information and regulatory interventions in mitigating the executive gender pay gap. We find female executives receive about 34% less compared to equivalent males from the same cohort, which falls by half over tenure within the company, but remains systematically significant throughout. The gender pay gap is the highest for young female executives and in the financial sector. Both demand-side (board gender quotas) and supply-side (family policies) regulatory interventions are associated with a lower gender gap in executive pay. Board gender quotas are associated with lower gender pay gap for experienced female executives in the highest age bracket. In contrast, supply-side interventions are associated with lower gender pay gap for the youngest female executives. Our results have important implications for the relative effectiveness of public policies that aim to reduce gender imbalance in corporate leadership and pay.

Suggested Citation

  • Homroy, Swarnodeep & Mukherjee, Shibashish, 2021. "The role of employer learning and regulatory interventions in mitigating executive gender pay gap," Journal of Corporate Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:corfin:v:71:y:2021:i:c:s0929119920303011
    DOI: 10.1016/j.jcorpfin.2020.101857
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    Cited by:

    1. Altunbas, Yener & Gambacorta, Leonardo & Reghezza, Alessio & Velliscig, Giulio, 2022. "Does gender diversity in the workplace mitigate climate change?," Journal of Corporate Finance, Elsevier, vol. 77(C).
    2. Barbara Pistoresi & Erica Poma & Alberto Rinaldi, 2022. "Gender quotas quotas between glass ceiling crack and firm performance: evidence from Italy’s financial sector," Department of Economics 0211, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    3. Shibashish Mukherjee & Sorin M.S. Krammer, 2024. "When the going gets tough : Board gender diversity in the wake of a major crisis," Post-Print hal-04522722, HAL.

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    More about this item

    Keywords

    Gender pay gap; Board gender quota; Parental leave provisions; Cohort analysis; Institutional factors;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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