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Gender Differences in Executive Compensation and Job Mobility

Author

Listed:
  • George-Levi Gayle

    (Tepper School of Business, Carnegie Mellon University)

  • Limor Golan

    () (Tepper School of Business, Carnegie Mellon University)

  • Robert Miller

    (Tepper School of Business, Carnegie Mellon University)

Abstract

Fewer women than men become executive managers. They earn less over their careers, hold more junior positions, and exit the occupation at a faster rate. We compiled a large panel data set on executives and formed a career hierarchy to analyze mobility and compensation rates. We find that, controlling for executive rank and background, women earn higher compensation than men, experience more income uncertainty, and are promoted more quickly. Amongst survivors, being female increases the chance of becoming CEO. Hence, the unconditional gender pay gap and job-rank differences are primarily attributable to female executives exiting at higher rates than men in an occupation where survival is rewarded with promotion and higher compensation.

Suggested Citation

  • George-Levi Gayle & Limor Golan & Robert Miller, 2011. "Gender Differences in Executive Compensation and Job Mobility," Working Papers 2011-013, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2011-013
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    References listed on IDEAS

    as
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    Cited by:

    1. Silvio Contessi & Francesca de Nicola & Li Li, 2014. "International trade, female labor and entrepreneurship in MENA countries," Chapters,in: The Economic and Political Aftermath of the Arab Spring, chapter 4, pages 106-140 Edward Elgar Publishing.
    2. Ali Fakih & Pascal L. Ghazalian, 2013. "Female Labour Force Participation in MENA's Manufacturing Sector: The Implications of Firm-related and National Factors," CIRANO Working Papers 2013s-46, CIRANO.
    3. repec:eme:rleczz:s0147-912120150000042001 is not listed on IDEAS
    4. Stefania Albanesi & Claudia Olivetti & María José Prados, 2015. "Gender and Dynamic Agency: Theory and Evidence on the Compensation of Top Executives," Research in Labor Economics,in: Gender in the Labor Market, volume 42, pages 1-59 Emerald Publishing Ltd.
    5. Paul M. Guest, 2016. "Executive Mobility and Minority Status," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(4), pages 604-631, October.
    6. Flabbi, Luca & Macis, Mario & Moro, Andrea & Schivardi, Fabiano, 2014. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," IZA Discussion Papers 8602, Institute for the Study of Labor (IZA).
    7. Iriberri, Nagore & Rey-Biel, Pedro, 2016. "Competitive Pressure Widens the Gender Gap in Performance: Evidence from a Two-Stage Competition in Mathematics," CEPR Discussion Papers 11493, C.E.P.R. Discussion Papers.
    8. Merlino L.P. & Parrotta P. & Pozzoli D., 2014. "Gender differences in sorting," Research Memorandum 022, Maastricht University, Graduate School of Business and Economics (GSBE).
    9. Ali Fakih, 2014. "Vacation Leave, Work Hours, and Wages: New Evidence from Linked Employer–Employee Data," LABOUR, CEIS, vol. 28(4), pages 376-398, December.
    10. Mohan, Nancy, 2014. "A review of the gender effect on pay, corporate performance and entry into top management," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 41-51.
    11. Lalanne, Marie & Seabright, Paul, 2016. "The old boy network: The impact of professional networks on remuneration in top executive jobs," SAFE Working Paper Series 123, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
    12. repec:fau:fauart:v:68:y:2018:i:1:p:34-70 is not listed on IDEAS
    13. Braga, Michela & Scervini, Francesco, 2017. "The performance of politicians: The effect of gender quotas," European Journal of Political Economy, Elsevier, vol. 46(C), pages 1-14.
    14. repec:bla:indres:v:56:y:2017:i:3:p:427-458 is not listed on IDEAS
    15. Duong, Lien & Evans, John, 2016. "Gender differences in compensation and earnings management: Evidence from Australian CFOs," Pacific-Basin Finance Journal, Elsevier, vol. 40(PA), pages 17-35.
    16. Luca Flabbi & Claudia Piras & Scott Abrahams, 2017. "Female corporate leadership in Latin America and the Caribbean region: Representation and firm-level outcomes," International Journal of Manpower, Emerald Group Publishing, vol. 38(6), pages 790-818, September.
    17. Morikawa, Masayuki, 2016. "What types of companies have female directors? Evidence from Japan," Japan and the World Economy, Elsevier, vol. 37, pages 1-7.
    18. Holger Sieg & Yu Wang, 2017. "The Impact of Student Debt on Education, Career, and Marriage Choices of Female Lawyers," NBER Working Papers 23453, National Bureau of Economic Research, Inc.
    19. Lam, Kevin C.K. & McGuinness, Paul B. & Vieito, João Paulo, 2013. "CEO gender, executive compensation and firm performance in Chinese‐listed enterprises," Pacific-Basin Finance Journal, Elsevier, vol. 21(1), pages 1136-1159.
    20. Guvenen, Fatih & Kaplan, Greg & Song, Jae, 2014. "The Glass Ceiling and the Paper Floor: Gender Differences among Top Earners, 1981–2012," Working Papers 716, Federal Reserve Bank of Minneapolis.
    21. Gayle, George-Levi & Golan, Limor & Miller, Robert A., 2015. "Interlocked Executives and Insider Board Members: An Empirical Analysis," Working Papers 2015-40, Federal Reserve Bank of St. Louis.
    22. Francis, Bill & Hasan, Iftekhar & John, Kose & Sharma, Zenu, 2013. "Asymmetric benchmarking of pay in firms," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 39-53.

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