Risk taking and gender in hierarchies
In a labor market hierarchy, promotions are affected by the noisiness of information about the candidates. I study the hypothesis that males are more risk taking than females, and its implications for rates of promotion and abilities of survivors. I define promotion hierarchies with and without memory, where memory means that promotion depends on the entire history of success. In both types of hierarchies, the surviving risk takers have lower average ability whenever they have a higher survival rate. Further, even if more risk takers than non risk takers are promoted in the beginning of the hierarchy, that will be reversed over time. The risk takers will eventually have a lower survival rate, but higher ability. As a consequence of these differences, the various requirements of employment law cannot simultaneously be satisfied. Further, if promotion standards are chosen to maximize profit, the standards will reflect gender in ways that are difficult to distinguish from discriminatory intent.
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.:
- Milgrom, Paul & Oster, Sharon, 1987.
"Job Discrimination, Market Forces, and the Invisibility Hypothesis,"
The Quarterly Journal of Economics,
MIT Press, vol. 102(3), pages 453-76, August.
- Paul R. Milgrom, 1984. "Job Discrimination, Market Forces and the Invisibility Hypothesis," Cowles Foundation Discussion Papers 708R, Cowles Foundation for Research in Economics, Yale University, revised 1985.
- Joseph E. Harrington & Jr., 1999. "Rigidity of Social Systems," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 40-64, February.
- Catherine C. Eckel & Philip J. Grossman & Nancy Lutz & V. Padmanbhan, 1997. "Playing it Safe: Men, Women, and Risk Aversion," Monash Economics Working Papers archive-42, Monash University, Department of Economics.
- Javier Gardeazabal & Maria Espinosa, 2007.
"Do students behave rationally in multiple-choice tests? Evidence from a field experiment,"
Natural Field Experiments
00237, The Field Experiments Website.
- María Paz Espinosa & Javier Gardeazabal, 2013. "Do Students Behave Rationally in Multiple Choice Tests? Evidence from a Field Experiment," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 9(2), pages 107-135, July.
- Espinosa Alejos, María Paz & Gardeazabal, Javier, 2005. "On the strategic equivalence of multiple-choice test scoring rules," DFAEII Working Papers 2005-20, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Dekel, E. & Scotchmer, S., 1999.
"On the Evolution of Attitudes Towards Risk in Winner-Take-All Games,"
4-99, Tel Aviv.
- Dekel, Eddie & Scotchmer, Suzanne, 1999. "On the Evolution of Attitudes towards Risk in Winner-Take-All Games," Journal of Economic Theory, Elsevier, vol. 87(1), pages 125-143, July.
- Lundberg, Shelly J, 1991. "The Enforcement of Equal Opportunity Laws under Imperfect Information: Affirmative Action and Alternatives," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 309-26, February.
- Sobel, Joel, 2001. "On the Dynamics of Standards," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 606-23, Winter.
- Richard Startz & Lundberg, .
"Private Discrimination and Social Intervention in Competitive Labor Markets,"
Rodney L. White Center for Financial Research Working Papers
19-81, Wharton School Rodney L. White Center for Financial Research.
- Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-47, June.
- Catherine C. Eckel & Philip J. Grossman, 2002. "Sex Differences and Statistical Stereotyping in Attitudes Toward Financial Risk," Monash Economics Working Papers archive-03, Monash University, Department of Economics.
- Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Monash Economics Working Papers archive-01, Monash University, Department of Economics.
- Bardsley Peter & Sherstyuk Katerina, 2006. "Rat Races and Glass Ceilings," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-35, November.
- Eckel, Catherine C. & Grossman, Philip J., 2008.
"Men, Women and Risk Aversion: Experimental Evidence,"
Handbook of Experimental Economics Results,
- David Neumark & Harry Holzer, 2000.
"Assessing Affirmative Action,"
Journal of Economic Literature,
American Economic Association, vol. 38(3), pages 483-568, September.
- Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-30, October.
When requesting a correction, please mention this item's handle: RePEc:the:publsh:291. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin J. Osborne)
If references are entirely missing, you can add them using this form.