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Who moves up the career ladder? A model of gender differences in job promotion

  • Empar Pons Blasco


    (Universitat de València)

  • Luisa Escriche Bertolín

    (Universitat de València)

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    This paper presents an adverse selection model that contributes to explain why women are less likely to be promoted. There are two types of workers: family-committed and job-committed workers. The cost of job effort during the first period of the working life is higher for the former. Firms offer two types of contract, one involving high effort during the first period with promotion possibilities and the other requiring low effort but with no opportunity for promotion attached. We show that women are less likely to apply for jobs with promotion possibilities, but when they do, women are just as likely to succeed as men.

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    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2009-23.

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    Length: 32 pages
    Date of creation: Sep 2009
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasad:2009-23
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    5. Cunyat, Antoni & Sloof, Randolph, 2011. "Employee types and endogenous organizational design: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 553-573.
    6. Maliar, Lilia & Maliar, Serguei & Valli, Fernando, 2010. "Solving the incomplete markets model with aggregate uncertainty using the Krusell-Smith algorithm," Journal of Economic Dynamics and Control, Elsevier, vol. 34(1), pages 42-49, January.
    7. Macho-Stadler, Ines & Perez-Castrillo, J. David, 2001. "An Introduction to the Economics of Information: Incentives and Contracts," OUP Catalogue, Oxford University Press, edition 2, number 9780199243259.
    8. Laura Giuliano & David I. Levine & Jonathon Leonard, 2006. "An Analysis of Quits, Dismissals, and Promotions at a Large Retail Firm," Working Papers 0721, University of Miami, Department of Economics.
    9. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . ""Incorporating Concern for Relative Wealth into Economic Models''," CARESS Working Papres 95-14, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    10. Jones, David R & Makepeace, Gerald H, 1996. "Equal Worth, Equal Opportunities: Pay and Promotion in an Internal Labour Market," Economic Journal, Royal Economic Society, vol. 106(435), pages 401-09, March.
    11. Alberto Alesina & Paola Giuliano, 2007. "The Power of the Family," NBER Working Papers 13051, National Bureau of Economic Research, Inc.
    12. Fershtman, Chaim & Hvide, Hans K & Weiss, Yoram, 2003. "Cultural Diversity, Status Concerns and the Organization of Work," CEPR Discussion Papers 3982, C.E.P.R. Discussion Papers.
    13. Randall W. Eberts & Joe A. Stone, 1985. "Male-Female Differences in Promotions: EEO in Public Education," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 504-521.
    14. Pudney, Stephen & Shields, Michael A., 1999. "Gender and Racial Discrimination in Pay and Promotion for NHS Nurses," IZA Discussion Papers 85, Institute for the Study of Labor (IZA).
    15. Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-73, June.
    16. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
    17. Carlos Oyarzun & Paan Jindapon, 2009. "Strategic truth and deception," Working Papers. Serie AD 2009-24, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    18. Francine Blau & Jed DeVaro, 2006. "New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires," Working Papers 891, Princeton University, Department of Economics, Industrial Relations Section..
    19. Booth, Alison & Jeff Frank & David Blackaby, 2003. "Outside Offers and the Gender Pay Gap: Empirical Evidence from the UK Academic Labour Market," Royal Economic Society Annual Conference 2003 28, Royal Economic Society.
    20. McCue, Kristin, 1996. "Promotions and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 175-209, April.
    21. Cobb-Clark, Deborah A., 2001. "Getting Ahead: The Determinants of and Payoffs to Internal Promotion for Young U.S. Men and Women," IZA Discussion Papers 288, Institute for the Study of Labor (IZA).
    22. Luisa Escriche & Gonzalo Olcina & Rosario Sánchez, 2004. "Gender discrimination and intergenerational transmission of preferences," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 485-511, July.
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