Gender Bias in Promotions: Evidence from Financial Institutions
54 Pages Posted: 13 Dec 2021 Last revised: 4 Apr 2022
Date Written: March 31, 2022
We test for gender bias in promotions at financial institutions using two central predictions of Becker’s (1957, 1993) model: firms with bias will (1) raise the promotion bar for marginally promoted female workers, and (2) incur costs from forgoing efficient employment practices. We find support for both of these predictions using a new nationwide panel of mortgage loan officers and their branch managers, encompassing approximately 72,000 workers from over 1,000 shadow banks from 2014 to 2019. Overall, our findings provide evidence that gender bias is an important factor in gender disparities at financial institutions.
Keywords: promotion, gender bias, financial institution, shadow bank, discrimination
JEL Classification: G21, J71, M51
Suggested Citation: Suggested Citation