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Why Are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007

Author Info

Listed author(s):
  • Smith, Nina

    ()

    (Aarhus University)

  • Smith, Valdemar

    ()

    (Aarhus School of Business)

  • Verner, Mette

    ()

    (Danish School of Media and Journalism)

Abstract

In most OECD countries, only very few women succeed in reaching top executive positions. In this paper, the probability of promotion into VP and CEO positions is estimated based on employer-employee data on all Danish companies observed during the period 1997-2007. After controlling for a large number of family-related variables, including take-up history of maternity and paternity leave and proxies for 'female-friendly' companies, there is still a considerable gap in the promotion probabilities for CEO positions, but not for VP positions. Thus, the results cannot confirm recent theories on 'belief flipping' or disappearance of statistical discrimination against women who succeed getting into career track positions. The results reflect that the hiring decision and the decision to enter a top position as 'number one', i.e. CEO, in the organization is very different from the decision to hire or become VP, i.e. 'number two' or lower.

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File URL: http://ftp.iza.org/dp5961.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5961.

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Length: 48 pages
Date of creation: Sep 2011
Publication status: published in: Industrial and Labor Relations Review, 2013, 66 (2), 380-408
Handle: RePEc:iza:izadps:dp5961
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IZA, P.O. Box 7240, D-53072 Bonn, Germany

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Keywords: promotion; top executive positions; statistical discrimination;

Find related papers by JEL classification:

  • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
  • 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
  • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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  1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
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  3. 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..
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  7. David Bjerk, 2008. "Glass Ceilings or Sticky Floors? Statistical Discrimination in a Dynamic Model of Hiring and Promotion," Economic Journal, Royal Economic Society, vol. 118(530), pages 961-982, 07.
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  9. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1067-1101.
  10. David A. Matsa & Amalia R. Miller, 2011. "Chipping Away at the Glass Ceiling: Gender Spillovers in Corporate Leadership," American Economic Review, American Economic Association, vol. 101(3), pages 635-639, May.
  11. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
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  14. Simon Fietze & Elke Holst & Verena Tobsch, 2009. "Personality and Career: She's Got What It Takes," Discussion Papers of DIW Berlin 955, DIW Berlin, German Institute for Economic Research.
  15. Smith, Nina & Smith, Valdemar & Verner, Mette, 2010. "The Gender Pay Gap in Top Corporate Jobs in Denmark: Glass Ceilings, Sticky Floors or Both?," IZA Discussion Papers 4848, Institute for the Study of Labor (IZA).
  16. Amalia Miller, 2011. "The effects of motherhood timing on career path," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1071-1100, July.
  17. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
  18. Roland G. Fryer, Jr., 2006. "Belief Flipping in a Dynamic Model of Statistical Discrimination," NBER Working Papers 12174, National Bureau of Economic Research, Inc.
  19. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
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  21. 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.
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Cited by:

  1. Parrotta, Pierpaolo & Smith, Nina, 2013. "Female-Led Firms: Performance and Risk Attitudes," IZA Discussion Papers 7613, Institute for the Study of Labor (IZA).
  2. Juanna Joensen, 2012. "Math and Gender: What if Girls Do Math?," 2012 Meeting Papers 992, Society for Economic Dynamics.
  3. Geiler, P.H.M., 2012. "Essays on executive remuneration contracting : Managerial power, corporate payout, and gender discrimination," Other publications TiSEM 3c536b0d-bce3-4d1a-9f6f-3, Tilburg University, School of Economics and Management.
  4. Joensen, Juanna Schrøter & Nielsen, Helena Skyt, 2013. "Math and Gender: Is Math a Route to a High-Powered Career?," IZA Discussion Papers 7164, Institute for the Study of Labor (IZA).
  5. Parrotta, Pierpaolo & Smith, Nina, 2013. "Why So Few Women on Boards of Directors? Empirical Evidence from Danish Companies 1997-2007," IZA Discussion Papers 7678, Institute for the Study of Labor (IZA).

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