Gender Bias in Promotions: Evidence from Financial Institutions

Authors

Ruidi Huang, Southern Methodist University (SMU) - Finance DepartmentFollow
Erik J. Mayer, University of Wisconsin-Madison, Finance DepartmentFollow
Darius P. Miller, Southern Methodist University (SMU) - Finance DepartmentFollow

Publication Date

8-20-2023

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.

Document Type

Article

Keywords

promotion, gender bias, financial institution, shadow banks

Disciplines

Finance

DOI

10.2139/ssrn.3938494

Source

SMU Cox: Finance (Topic)

Language

English