Women in Top Management and Job Self Selection

Posted: 17 Nov 2016 Last revised: 30 Jan 2018

Herman Sahni

Baldwin Wallace University

Suresh L. Paul

Independent

Date Written: November 10, 2010

Abstract

Using a large sample of publicly traded firms from 1994-2002, we study the type of firms that female executives prefer to work in. We find that (1) female executives predominantly work in high risk firms and in high risk industries, (2) female CEOs have higher dismissal probability and female non-CEO executives (CFO, COO and President), in general, have lower tenure at office, and (3) there is significant self selection for female to work in high risk segments despite higher dismissal rates or lower tenure at job. Consistent with Bertrand and Hallock (2001), we find that, on average, female executives are paid lower than men, a result that is mainly driven by female in safer work segments. On the other hand, female executives in risky segments have comparable pay to their male counterparts. Using a size and industry male executive benchmark for each female executive, we also show that pay differential diminishes with the increase in job risk.

Keywords: gender economics; corporate governance; CEO turnover; executive compensation

JEL Classification: G30; G34; J16

Suggested Citation

Sahni, Herman and Paul, Suresh L., Women in Top Management and Job Self Selection (November 10, 2010). Available at SSRN: https://ssrn.com/abstract=2870673 or http://dx.doi.org/10.2139/ssrn.2870673

Herman Sahni (Contact Author)

Baldwin Wallace University ( email )

Suresh Lazarus Paul

Independent ( email )

No Address Available

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