Executive Gender Pay Gap: The Role of Employer Learning and Regulatory Interventions
43 Pages Posted: 17 Apr 2019
Date Written: March 28, 2019
Using individual director-level data from sixteen countries, we examine both within-firm and cross-country determinants of the executive gender pay gap. We have two main results. First, female executives, on average, are paid about 34% less compared to equivalent males from the same cohort. This pay gap falls over the tenure of the executives within the firm but remains significant throughout the career. Second, both demand-side and supply-side policy interventions are partially effective: executive gender pay gap is lower in countries with board gender quotas, and in countries with significant parental leave provisions. The channels through which these policies work are different. Female directors in the youngest age group, for whom the gender pay gap is the highest, seems to benefit more from the supply side interventions, while female directors in the highest age bracket benefit from gender quotas. These results are stronger for banking and financial services industries. Our results highlight the role of employer learning and the effectiveness of supply-side gender policies.
Keywords: Gender Pay Gap, Lifecycle, Institutional Factors
JEL Classification: J31, G34, G38
Suggested Citation: Suggested Citation