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Racial Gaps in Managerial Career Advancement

Author

Listed:
  • Sam Hoey

    (Erasmus University Rotterdam)

  • Thomas Peeters

    (Erasmus University Rotterdam)

  • Stefan Szymanski

    (University of Michigan)

Abstract

We study racial disparities in advancement to top management using the careers of 4,770 former frontline workers from a prominent industry in England. Black workers are substantially less likely than non-Black workers to reach top managerial positions (11 versus 20 percent). We identify three sources of this gap: lower entry into management, lower promotion rates within management, and shorter tenure in senior managerial roles. Counterfactual simulations show that barriers to entering management explain most of the racial gap early in workers’ careers, while differences in promotion rates become the dominant driver later on.

Suggested Citation

  • Sam Hoey & Thomas Peeters & Stefan Szymanski, 2026. "Racial Gaps in Managerial Career Advancement," Tinbergen Institute Discussion Papers 26-053/VII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20260053
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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