Gender Bias in Promotions: Evidence from Financial Institutions

73 Pages Posted: 13 Dec 2021 Last revised: 12 Oct 2023

See all articles by Ruidi Huang

Ruidi Huang

Southern Methodist University (SMU) - Finance Department

Erik J. Mayer

University of Wisconsin-Madison, Finance Department

Darius P. Miller

Southern Methodist University (SMU) - Finance Department

Date Written: August 20, 2023

Abstract

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 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 gaps at financial institutions.

Keywords: promotion, gender bias, financial institution, shadow banks

JEL Classification: G21, J71, M51

Suggested Citation

Huang, Ruidi and Mayer, Erik J. and Miller, Darius P., Gender Bias in Promotions: Evidence from Financial Institutions (August 20, 2023). SMU Cox School of Business Research Paper No. 21-18, Available at SSRN: https://ssrn.com/abstract=3938494 or http://dx.doi.org/10.2139/ssrn.3938494

Ruidi Huang

Southern Methodist University (SMU) - Finance Department ( email )

United States

Erik J. Mayer (Contact Author)

University of Wisconsin-Madison, Finance Department ( email )

975 University Avenue
Madison, WI 53706
United States

HOME PAGE: http://https://sites.google.com/site/erikjmayer/

Darius P. Miller

Southern Methodist University (SMU) - Finance Department ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
788
Abstract Views
2,562
Rank
60,314
PlumX Metrics