Gender and Dynamic Agency: Theory and Evidence on the Compensation of Female Top Executives
Survey 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.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
|Date of creation:||Nov 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.bu.edu/econ/
More information through EDIRC
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.:
- Wang, C., 1995.
"Incentives, CEO Compensation, and Shareholder Wealth in a Dynamic Agency Model,"
GSIA Working Papers
1995-08, Carnegie Mellon University, Tepper School of Business.
- 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.
- Wang, Cheng, 1997. "Incentives, CEO Compensation and Shareholder Wealth in a Dynamic Agency Model," Staff General Research Papers 5170, Iowa State University, Department of Economics.
- Jensen, Michael C & Murphy, Kevin J, 1990.
"Performance Pay and Top-Management Incentives,"
Journal of Political Economy,
University of Chicago Press, vol. 98(2), pages 225-64, April.
- 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..
- 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.
When requesting a correction, please mention this item's handle: RePEc:bos:wpaper:wp2006-061. 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: (Gillian Gurish)
If references are entirely missing, you can add them using this form.