Women in the Financial Sector

67 Pages Posted: 5 May 2022

See all articles by Spyridon Lagaras

Spyridon Lagaras

University of Pittsburgh, Katz Graduate Business School

Maria‐Teresa Marchica

University of Manchester - Alliance Manchester Business School

Elena Simintzi

University of North Carolina Kenan-Flagler Business School; Centre for Economic Policy Research (CEPR)

Margarita Tsoutsoura

Washington University in Saint Louis, John M. Olin Business School; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); National Bureau of Economic Research (NBER)

Date Written: May 2, 2022

Abstract

We examine the sources and evolution of the gender pay gap in finance, using administrative micro data from the U.K. for 1997-2019. We show a persistently larger gender pay gap in finance, compared to other sectors. Exploiting employees who switch firms, we find the gender pay gap in finance is predominantly explained by more skilled male employees sorting into finance relative to other sectors. The gender pay gap in finance is relatively lower for flexible occupations, in firms that offer childcare benefits and in more female friendly environments. Over time, higher investment in human capital for women and sorting in high-skilled occupations within the sector as well as policy interventions have reduced the gender pay gap in finance.

Keywords: Gender Pay Gap, Finance, Pay Disclosure

JEL Classification: J16; G34; G38

Suggested Citation

Lagaras, Spyridon and Marchica, Maria‐Teresa and Simintzi, Elena and Tsoutsoura, Margarita, Women in the Financial Sector (May 2, 2022). Available at SSRN: https://ssrn.com/abstract=4098229 or http://dx.doi.org/10.2139/ssrn.4098229

Spyridon Lagaras

University of Pittsburgh, Katz Graduate Business School ( email )

3950 Roberto Clemente Dr
334 Mervis Hall
Pittsburgh, PA Allegheny 15260
United States

Maria‐Teresa Marchica

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

Elena Simintzi

University of North Carolina Kenan-Flagler Business School ( email )

McColl Building, Room 4200B
300 Kenan Center Drive
Chapel Hill, NC 27599-3490
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Margarita Tsoutsoura (Contact Author)

Washington University in Saint Louis, John M. Olin Business School ( email )

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

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

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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