The Gender Gap Among Top Business Executives

38 Pages Posted: 23 Dec 2020

See all articles by Wolfgang Keller

Wolfgang Keller

University of Colorado; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Teresa Molina

University of Hawaii at Manoa

Will Olney

Williams College

Multiple version iconThere are 2 versions of this paper

Date Written: December 2020

Abstract

This paper examines gender differences among top business executives using a large executive employer matched data set spanning the last quarter century. Female executives make up 6.2% of the sample and we find they exhibit more labor market churning – both higher entry and higher exit rates. Unconditionally, women earn 26% less than men, which decreases to 7.9% once executive characteristics, firm characteristics, and in particular job title are accounted for. The paper explores the extent to which firm-level temporal flexibility and corporate culture can explain these gender differences. Although we find that women tend to select into firms with temporal flexibility and a female-friendly corporate culture, there is no evidence that this sorting drives the gender pay gap. However, we do find evidence that corporate culture affects pay gaps within firms: the within firm gender pay gap disappears entirely at female-friendly firms. Overall, while both corporate culture and flexibility affect the female share of employment, only corporate culture influences the gender pay gap.

JEL Classification: F16, J16, J24, J33

Suggested Citation

Keller, Wolfgang and Molina, Teresa and Olney, Will, The Gender Gap Among Top Business Executives (December 2020). CEPR Discussion Paper No. DP15552, Available at SSRN: https://ssrn.com/abstract=3753952

Wolfgang Keller (Contact Author)

University of Colorado ( email )

Department of Economics
PO Box 256
Boulder, CO 80309
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Teresa Molina

University of Hawaii at Manoa ( email )

2500 Campus Road
Honolulu, HI NA 96822
United States

Will Olney

Williams College ( email )

Williamstown, MA 01267
United States

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