Credentials Matter, but Only for Men: Evidence from the S&P 500

51 Pages Posted: 28 Jul 2021 Last revised: 2 Nov 2021

See all articles by Peter Cziraki

Peter Cziraki

Texas A&M University - Department of Finance; Tilburg Law and Economics Center (TILEC)

Adriana Robertson

University of Chicago Law School; European Corporate Governance Institute (ECGI)

Date Written: November 1, 2021

Abstract

We study gender differences in the value of credentials in managerial labor markets. We use within-firm variation in S&P 500 status for marginal firms “just included” on the index and managers who joined a marginal firm before its addition to the index to obtain variation in S&P 500 experience. We then difference out any unobservables that affect both women and men within the same firm-year. Men with experience at an S&P 500 firm obtain more subsequent independent directorships and executive roles at other S&P 500 firms, but not at non-S&P 500 firms. The increase is 12-42% relative to the average. Strikingly, we observe no such relationship for women. Our results suggest that one obstacle women face in the managerial labor market is that they receive less credit than men for similar credentials.

Keywords: Women in management, gender diversity, board of directors, executives, credentials

JEL Classification: G3, J16, J7, K2, M12, M51

Suggested Citation

Cziraki, Peter and Robertson, Adriana, Credentials Matter, but Only for Men: Evidence from the S&P 500 (November 1, 2021). Available at SSRN: https://ssrn.com/abstract=3894730 or http://dx.doi.org/10.2139/ssrn.3894730

Peter Cziraki (Contact Author)

Texas A&M University - Department of Finance ( email )

430 Wehner
College Station, TX 77843-4218
United States
979 845 1136 (Phone)

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Adriana Robertson

University of Chicago Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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