Women in the Financial Sector
79 Pages Posted: 5 May 2022 Last revised: 19 Aug 2023
Date Written: December 27, 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 relative to other sectors, which is predominantly explained by skilled male employees sorting relatively more into finance. The gender pay gap in finance is 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 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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