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
Date Written: August 15, 2019
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: Suggested Citation