The Role of Employer Learning and Regulatory Interventions in Mitigating Executive Gender Pay Gap

68 Pages Posted: 17 Apr 2019 Last revised: 29 Oct 2020

See all articles by Swarnodeep HomRoy

Swarnodeep HomRoy

University of Groningen

Shibashish Mukherjee

Erasmus Univeristy Rotterdam School of Management; University of Groningen

Date Written: August 15, 2019

Abstract

This paper examines the role of information and regulatory interventions in mitigating the executive gender pay gap. We find female executives are paid about 34 per cent less compared to equivalent males from the same cohort, which falls by half over tenure within the company, but remains systematically significant throughout. The gender pay gap is the highest for young female executives and in the financial sector. Both demand-side (board gender quotas) and supply-side (family policies) regulatory interventions are associated with a lower gender gap in executive pay. Board gender quotas are associated with lower gender pay gap for experienced female executives in the highest age bracket. In contrast, supply-side interventions are associated with lower gender pay gap for the youngest female executives. Our results have important implications for the relative effectiveness of public policies that aim to reduce gender imbalance in corporate leadership.

Keywords: Gender Pay Gap, Lifecycle, Institutional Factors

JEL Classification: J31, G34, G38

Suggested Citation

HomRoy, Swarnodeep and Mukherjee, Shibashish, The Role of Employer Learning and Regulatory Interventions in Mitigating Executive Gender Pay Gap (August 15, 2019). Available at SSRN: https://ssrn.com/abstract=3361824 or http://dx.doi.org/10.2139/ssrn.3361824

Swarnodeep HomRoy (Contact Author)

University of Groningen ( email )

Nettlebosje 2
Department of Economics, Econometrics and Finance
Groningen, Groningen 9747 AE
Netherlands

Shibashish Mukherjee

Erasmus Univeristy Rotterdam School of Management ( email )

University of Groningen ( email )

Faculty of Economics and Business
Nettelbosje 2
Groningen, 9747 AE
Netherlands

HOME PAGE: http://www.rug.nl/staff/shibashish.mukherjee/

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