What Prevents Female Executives from Reaching the Top?

Abstract

Exceptionally rich data from Sweden makes studying the gender gap in executives’ career progression and investigating its causes possible. In their 40s, female executives are about half as likely to be large-company CEOs and about one third less likely to be high earners than males. Abilities, skills, and education likely do not explain these gaps, because female executives appear better qualified than males. Instead, slow career progression in the five years after the first childbirth explains most of the female disadvantage. During this period, female executives work on average shorter hours than males and are more often absent from work. Their responses to childbirth are invariant to their career potential relative to their partners. These results suggest aspiring women may not reach the executive suite without trading off family life.

JEL Classification: G34, J16; J24; J31