Women in the Financial Sector
69 Pages Posted: 5 May 2022 Last revised: 13 Oct 2022
Date Written: May 2, 2022
We examine the evolution of the gender pay gap in finance, using administrative U.K. data over two decades. We show a persistently larger gender pay gap in finance, which 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 providing childcare benefits and in female-friendly environments. Over time, the difference in the gender pay gap between finance and non-finance sectors has steadily narrowed from 40% in 1997 down to 23% in 2019, as more skilled women sort into finance.
Keywords: Gender Pay Gap, Finance, Pay Disclosure
JEL Classification: J16; G34; G38
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