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The gender gap among top business executives

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  • Keller, Wolfgang
  • Molina, Teresa
  • Olney, William W.

Abstract

This paper examines gender differences among top US business executives using a large executive-employer matched data set spanning the last quarter century. Female executives make up 6% of the sample and exhibit more labor market churning – both higher entry and higher exit rates. Unconditionally, women earn 26% less than men, which decreases to 8% once executive characteristics, firm characteristics, and in particular job title are accounted for. We find that female executives are disproportionately represented in firms with more temporal flexibility and female-friendly corporate cultures, but this does not explain the gender pay gap. Rather, corporate culture is correlated with gender pay gaps within firms; specifically the within-firm gender pay gap is significantly smaller at female-friendly firms.

Suggested Citation

  • Keller, Wolfgang & Molina, Teresa & Olney, William W., 2023. "The gender gap among top business executives," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 270-286.
    • Handle: RePEc:eee:jeborg:v:211:y:2023:i:c:p:270-286
    DOI: 10.1016/j.jebo.2023.04.017
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    More about this item

    Keywords

    Executive compensation; Gender pay gap; Corporate culture;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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