You are on page 1of 7

WOMEN HELPING WOMEN?

EVIDENCE FROM PRIVATE SECTOR DATA ON WORKPLACE HIERARCHIES


Astrid Kunze and Amalia R. Miller

Abstract—We study gender spillovers in career advancement using eleven & Zemsky, 2000) or because promotion decisions are
years of employer-employee matched data on white-collar workers at
over 4,000 private sector workplaces in Norway. Our data allow us to affected by the taste-based or statistical discrimination of
define seven hierarchical ranks that are consistent across plants and over current leaders (statistical discrimination may be affected
time and track promotions even for individuals who change employers. by the gender of bosses if people are better at evaluating the
We find positive spillovers across ranks (flowing from higher-ranking to
lower-ranking women) but negative spillovers within ranks. The finding work performance of others who are more similar to them;
of narrower gender gaps in promotions for workers with more female Aigner & Cain, 1977). Increasing female representation at
bosses suggests that policies that increase female representation in corpo- higher ranks could also improve promotion rates for lower-
rate leadership can have spillover benefits to women in lower ranks.
ranking women by weakening the associations of leadership
with masculinity (Koenig et al., 2011). These theories for
I. Introduction positive spillover suggest that men’s historical dominance
of business leadership is self-perpetuating, but that it can be
A LTHOUGH women comprise nearly half of the labor
force across OECD countries, they remain dramati-
cally underrepresented among business leaders. Eight per-
disrupted by increases in female shares at higher ranks.
Although policymakers and advocates often assume that
cent of employed men in OECD countries have managerial gender spillovers from bosses are positive, it is worth noting
responsibilities, but only 4% of employed women do. At that they need not be. The spillovers from female bosses can
the highest levels of leadership, women hold only 5% of be negative if the ‘‘queen bee’’ phenomenon is common.
CEO positions in Fortune 1000 companies.1 The gender This happens when a woman who achieves career success in
gap in leadership is even present in Nordic countries, where a male-dominated field blocks other women from advancing
only 3% of CEOs at the 145 largest companies are women (Staines, Tavris, & Jayarante, 1974). Although women are
(Zander, 2014) and women are just 6% of general managers often expected to be more favorable judges of other
in public limited companies in Norway. women’s work,3 there is evidence of the opposite pattern in
This paper studies white-collar private sector workers in some male-dominated fields, which could also lead to nega-
Norway to examine a potential source of the gender gap in tive spillovers, as in Bagues and Esteve-Volart (2010).
leadership: gender differences in career progression as a Gender spillovers among peers can also be positive or
consequence of path dependence from male dominance of negative. Women may be more willing to compete against
workplace hierarchies. Specifically, we measure the spill- other women (Gneezy, Niederle, & Rustichini, 2003), lead-
over effects of increasing female representation at different ing to increasing female performance and promotion rates
organizational ranks on gender differences in promotion when the peer group has more women. However, unlike a
rates using comprehensive data on over half a million laboratory setting with individual tasks, workplaces often
worker-year observations across 4,000 plants from 1987 to involve both individual and cooperative tasks. While it is
1997.2 Rather than focusing exclusively on how the highest- possible that women collaborate more with other women, it
ranking women (top executives or board members) affect is also possible that women feel that their closest competi-
lower-ranking workers, we consider the entire organiza- tors for promotion are other women. This could happen,
tional hierarchy of white-collar workers and changes in the for example, in response to tokenism at workplaces or
female share of two groups of coworkers: peers at the same informal limits on the number of women in higher ranks
rank and bosses at a higher rank. (Kanter, 1977; Dezs}o, Ross, & Uribe, 2016). In that case,
Gender spillovers from bosses might be positive because women might be less cooperative with one another than
higher-ranking women serve as mentors, role models, and with men, which could lower their relative promotion rates.
advocates for their lower-ranking coworkers (Athey, Avery, This form of sex discrimination in promotions, through
which female workers are competing most intensively with
Received for publication June 10, 2015. Revision accepted for publica- their female peers to be promoted into positions occupied
tion January 9, 2017. Editor: Bryan S. Graham. by female bosses, would imply negative gender spillovers
* Kunze: NHH Norwegian School of Economics; Miller: University of within ranks but positive spillovers from higher-ranking to
Virginia, IZA, and NBER.
We are grateful to Francine Blau, Albrecht Glitz, David Matsa, Øivind lower-ranking women.
Anti Nilsen, Carmit Segal, Geoffrey Warner, and various seminar and We find that women in our sample experience a signifi-
conference participants for helpful comments and discussions. cantly lower annual likelihood of advancing a rank than do
1
http://www.catalyst.org/knowledge/women-ceos-fortune-1000 lists
female CEOs.
2
Kunze and Miller (2014) demonstrate the empirical relevance of both
3
promotion gaps as a source of gender differences in leadership and gender Even unconscious biases against women in performance ratings are
differences in hierarchical rank in explaining the gender pay gap in our found to be less severe when women comprise a larger share of the team
sample. (summarized in Valian, 1998).

The Review of Economics and Statistics, December 2017, 99(5): 769–775


Ó 2017 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
doi:10.1162/REST_a_00668
770 THE REVIEW OF ECONOMICS AND STATISTICS

their male counterparts, after controlling for a wide range coverage. In 1997, NHO employees represented 37% of all
of individual characteristics and workplace fixed effects. male workers and 27% of all female workers in Norway.
The gap is reduced when there are more female bosses in We restrict our sample to white-collar workers to ensure a
the next highest rank, but it is increased when there are comparable set of jobs with a substantial presence of both
more female peers at the same rank. These results are con- male and female workers. Women comprise 30% of the
sistent across a range of models with different sets of con- sample of workers below the top rank, who have a chance
trol variables and fixed effects and are robust to alternative of promotion. Like any other employment-based sample,
definitions of female leadership shares. ours is limited to current workers and excludes people who
Although previous studies have measured gender spill- are unemployed or out of the labor market. Workers on
overs in hierarchical organizations, we are first to measure temporary leave from a job, such as parental leave, how-
effects of both types of coworkers on promotion rates in ever, are included in the data.
corporations. The only other paper we are aware of measur- Several features of our data enable us to study how gen-
ing effects of the gender mix of peers and superiors on pro- der spillovers affect promotions. The data contain detailed
motion rates is Karaca-Mandic, Powell, and Maestas’s job information that allow us to assign workers to one of
(2013) study of gender and racial spillovers among the seven hierarchical ranks that are defined consistently across
lowest-ranking enlisted members of the U.S. Army. plants and over time. Hence, our sample includes a wide
Although that setting is quite different from ours, it is inter- range of employers, unlike many studies of gender gaps in
esting that the pattern of gender spillovers observed in that promotions that focus on a single firm (e.g., Ransom &
study is the same: positive effects of female superiors but Oaxaca, 2005; Giuliano et al., 2011; Jones and Makepeace,
negative effects of female peers. 1996). We observe the population of workers at each plant,
Papers that have focused exclusively on downward-flow- which enables our analysis of gender spillovers. We are
ing gender spillovers on promotion rates, such as Blau and able to track workers over time and across plants in the
DeVaro (2007) and Giuliano, Levine, and Leonard (2011), sample, meaning that we can also observe promotions that
tend not to find significant effects. In contrast with those involve a change of employer. These features are not typi-
studies, we use panel data on workers across all ranks and cally available in samples based on household or firm sur-
include controls for the worker’s current rank and the veys that include multiple firms (Olson & Becker, 1983;
female share among peers. This last variable is positively Blau & DeVaro, 2007),5 and they allow us to control for
correlated with female leadership, but its estimated effect unobservable differences in promotion rates between work-
on female promotion rates is negative. Its omission can places and for the worker’s current rank using a wide range
therefore be a source of downward bias in the estimated of fixed effects. We also have detailed information on
effect of female bosses. Our finding of positive spillovers worker characteristics that we include as controls.
from female leaders is more in line with the results from The main weakness of our data source relative to sources
studies that examine the representation of women at differ- used in some previous studies of promotions (such as Blau
ent organizational ranks (e.g., Kurtulus & Tomaskovic- & DeVaro, 2007, and several of the single-firm analyses) is
Devey, 2012; Matsa & Miller, 2011). Our paper also contri- that we do not observe performance reviews or evaluations
butes to a broader literature on how female business leaders for workers. Although it is possible that these (often subjec-
affect lower-ranking workers, including recent studies of tive) evaluations themselves reflect (possibly unconscious)
compensation levels, gender pay gaps (Flabbi et al., 2014; gender bias on the part of evaluators,6 having that informa-
Tate & Yang, 2015; Cardoso & Winter-Ebmer, 2010), tion would have enabled us to distinguish between promo-
employment, and downsizing (Matsa & Miller, 2013, 2014). tion gaps driven by differences in evaluation scores and
those caused by women needing to meet higher perfor-
mance benchmarks to advance. This latter situation can
II. Data Description arise when the positive signal from a high evaluation is per-
Our data set is derived from Statistics Norway’s register ceived as less precise when applied to women: risk-averse
data and from plant-level job surveys compiled by the Con- supervisors may then prefer to promote men over equally
federation of Norwegian Enterprise (NHO, Næringslivets scoring women (Aigner & Cain, 1977). Without this infor-
Hovedorganisasjon), the primary employer association in mation, the gender spillovers we measure could potentially
Norway, for 1987 to 1997.4 Our estimation sample includes include both of these effects.
workers at private sector firms that are NHO members,
which overrepresents manufacturing but retains broad 5
Winter-Ebmer and Zweimuller (1997) use a cross-sectional sample
and define prior promotions implicitly using rank and education.
4 6
The job survey was conducted to obtain an overview of earnings Ibarra, Carter, and Silva (2010) discuss gender bias in evaluations in
among employees; response rates among surveyed plants were very high the corporate setting. Bagues and Esteve-Volart (2010) also find evidence
because employers were legally bound to participate. We use the longest of gender bias, but in their setting, evaluators are harsher on candidates of
time period that our key variables are available and include workers born their same sex. Evaluations for promotions into management positions
between 1936 and 1969. For more details about the data source, see may be further influenced by stereotypical associations between masculi-
Lønnsstatistikk for funksjonærer, an annual publication. nity and leadership (Koenig et al., 2011).
WOMEN HELPING WOMEN? 771

TABLE 1.—SUMMARY STATISTICS


Male Female Total Total Total
Mean Mean Mean SD Observations
Entire sample
Rank ¼ 1 (low) 0.024 0.27 0.094 744,531
Rank ¼ 2 0.18 0.15 0.17 744,531
Rank ¼ 3 0.28 0.4 0.31 744,531
Rank ¼ 4 0.29 0.14 0.25 744,531
Rank ¼ 5 0.079 0.012 0.06 744,531
Rank ¼ 6 0.13 0.025 0.1 744,531
Rank ¼ 7 (top) 0.015 0.0011 0.011 744,531
Main analysis sample
Female 0 1 0.3 597,552
Any promotion 0.073 0.066 0.071 597,552
Internal promotion 0.059 0.056 0.058 597,552
Stay at plant 0.74 0.74 0.74 597,552
Age 40.2 37.1 39.3 9.04 597,552
Years of schooling 12.6 11.7 12.3 2.62 597,552
Years of work experience 18.4 14.5 17.3 7.33 597,552
Years of tenure 7.41 6.52 7.15 5.28 597,552
Rank-specific tenure 4.29 4.04 4.22 2.76 597,552
Working part time 0.076 0.26 0.13 597,552
Any children 0.7 0.56 0.66 597,552
Children under 7 0.33 0.27 0.31 597,552
Female boss share 0.14 0.25 0.17 0.24 597,552
Female peer share 0.18 0.58 0.3 0.29 597,552
Data from NHO (1987–1997) and Statistics Norway. Summary statistics are reported for the entire sample and the main analysis sample that includes workers in ranks 1 to 6 and for whom we calculated the pro-
portion of female bosses at the next highest rank. The proportions of workers within each of the ranks (1 through 7) are reported using the entire sample. Female boss share is defined for workers one rank higher.

A. Gender Differences in Promotion Rates our seven-rank scale for hierarchies is consistent across
plants and time. In our data, annual promotions of both types
We define a promotion in year t as a job change between generally involve increases of one or two ranks.
years t and tþ1 that entails an increase in rank. Worker ranks Table 1 reports additional summary statistics for our sam-
include seven hierarchical levels that are determined using ple. Annual promotion rates are higher for men (7.3% for
information drawn directly from NHO survey responses any promotions and 5.9% for internal promotions) than for
about each worker’s occupational group, task level, and job women (6.6% for any promotions and 5.6% for internal pro-
description. Within each occupation,7 up to seven task levels motions), but these raw differences actually understate the
are distinguished, ranging from unskilled and routine tasks gender gaps for workers of the same rank. This is because
in the lower levels to high-skill and leadership tasks in the promotion rates decline dramatically at higher ranks, drop-
higher levels. Not all occupations span all task levels; some ping from 13% to 1.7% for any promotions and from 11%
are concentrated in the lower levels, while others are in the to 1.3% for internal promotions,8 and women are vastly
higher levels. Because the task levels are designed for com- overrepresented in the lowest rank (over 80% female) and
parisons within occupational groups, we also use informa- underrepresented in the highest ranks (over 90% male).
tion on the detailed job descriptions to assign ranks in a way Men and women in the sample also differ along other
that ensures comparability across occupational groups. observable dimensions that may be related to productivity
Table 1 reports the distribution of workers across ranks. and promotions. Men are, on average, older and have more
Following the empirical literature on promotions, we formal schooling, work experience, tenure at their current
focus on binary measures of progress. We separately con- workplace, and rank-specific tenure (time since initial entry
sider measures of internal promotions limited to workers or since the last promotion, whichever is more recent). They
who remain at the same plant in period tþ1 and any promo- are also less likely to be working part time, which we define
tions, which also include rank increases involving a change as usual weekly work hours under 37 over the year (defined
in plant. Internal promotions more closely match the defini- based on contracted hours and not affected by leave taking).
tion used in the literature (e.g., Booth, Francesconi, & Frank, Not accounting for these differences could overstate the
2003), where changing employers (with an increase in rank) gender gap for comparable workers.
is not counted as a promotion. The advantage of our second In our regression analysis, we therefore include all of
measure is that it captures a wider range of possible paths these variables as controls in our models, as well as year,
for career progression. We are able to measure this outcome occupation, and plant fixed effects. After accounting for
because our data track workers across plants and because
8
The pattern of lower rates of promotion from higher ranks is a typical
feature of workplace hierarchies. Other evidence that our rank measure is
7
The occupational groups are (a) technical; (b) production supervision; capturing meaningful variation in job status is the increasing hourly
(c) administrative, including clerical, accounting, and shipping; (d) sales; wages, age, and years of education at ascending ranks and large year-on-
(e) storage; and (f) other. year wage growth concurrent with promotions.
772 THE REVIEW OF ECONOMICS AND STATISTICS

these variables, we find a highly statistically significant FemaleShareBosses denotes the female share of worker i’s
gender gap in promotions (coefficient on a Female indica- bosses who are one rank higher at the same plant j in year t.
tor), of 3.3 percentage points, or 50% of the female pro- Each of these variables is interacted with the Female vari-
motion rate. The gender gap for internal promotions is 2.6 able, which is set equal to 1 if the worker is female and 0
percentage points (46% of the female rate, also highly sig- otherwise. The coefficients of the interacted variables are
nificant). When we estimate expanded versions of the the differential effects of interest. The outcome variable is
model with controls for family status—indicators for hav- an indicator for an increase in rank between period t and
ing any children under the age of 17 and under the age of 7 (t þ 1), regardless of whether the worker also changed
and their interactions with the Female indicator—we still plants during the time. The explanatory variables are all
find substantial and significant gaps of 2.5 (for any promo- measured in period t.
tions) and 2.0 (for internal promotions) percentage points Column 1 has the basic controls for year, industry, occu-
for childless women. These promotion gaps are present for pation, age, schooling, experience, tenure, rank-specific
workers in each of the six lower ranks in the hierarchy. tenure, part-time status, and rank; column 2 adds plant fixed
effects; and column 3 adds the two indicators for having
B. Gender Mix of Coworkers children (under the ages of 17 and 7) and their interactions
with the Female indicator. Column 4 addresses concerns
We use two measures of coworker gender: (a) the female
that individuals on different promotion trajectories might
share among peers, who are workers at the same rank, plant,
sort differentially into workplaces with different coworker
and year, and (b) the female share among bosses working at
demographics by adding a full set of individual worker
the next highest rank at the same plant and year. The mean
fixed effects. Across all of the models, we find significant
female peer share is 30%, which is higher than the mean
gender spillovers in promotions. More female workers in
female boss share of 17%, reflecting women’s underrepre-
the next highest rank are related to a smaller gender gap in
sentation at higher ranks. Across all observations in our
promotion rates, and more female coworkers in the same
sample, over 25% of workers have no female bosses and
rank are related to a larger gap. The female boss share inter-
only 1% of workers have all female bosses.
action ranges from 0.018 to 0.021, implying a standard
Two features of our measure of female bosses are worth
deviation (or 0.24) increase in female bosses increases
noting. First, the measure is based only on plant-level rates;
women’s relative promotion rates by about 0.5 percentage
we are not able to identify workers’ immediate supervisors
points, or 7% of their promotion rate. The female peer share
(as in Karaca-Mandic et al., 2013, and Blau & DeVaro,
interaction ranges from 0.039 to 0.062 and implies that
2007). If the effects of female bosses run exclusively within
a standard deviation (or 0.29) increase in female peers
the chain of authority, then our estimates, based on a noisy
would reduce female promotion rates relative to men’s by
measure, will tend to understate the importance of female
at least 1.7 percentage points, or 25%.
bosses. Second, our measure of female bosses is rank speci-
The positive interaction effect from female bosses is
fic and focuses on female representation at the next highest
consistent with women helping women below them in the
rank. This has the advantage of measuring effects of female
hierarchy through mentoring, serving as role models or
leadership deep within organizational hierarchies. In a
reducing discrimination by supervisors. The finding pro-
robustness analysis, we also found similar positive spill-
vides indirect support for the theory that demand-side
overs on promotion rates from increasing female shares two
factors play a role in creating the observed gender gaps in
ranks higher or among the plant’s top leadership, defined
promotion rates. It also provides some support for a key
based on rank, earnings, or leadership job tasks.
mechanism underlying public policies aimed at promoting
III. Gender Spillovers in Promotions women in business leadership positions: that female leaders
tend to help lower-ranking women in their organizations.
Our main estimates of gender spillovers are reported in the The finding of negative gender interactions among
top panel of table 2. They are from estimating variants of this women at the same rank, however, complicates this story of
model with different sets of controls and fixed effects (in Xijt): women helping women. Because many of the theories of
positive gender spillovers (mentoring, sponsorship, role
Promotionijt ¼ bF Femalei þ bX Xijt models, access to powerful networks) are more important
þ bP FemaleSharePeersijt for bosses than for peers, the absence of positive peer
þ bPF FemaleSharePeersijt  Femalei spillovers may not be surprising. As discussed above, the
negative effects of female peers may come from greater
þ bB FemaleShareBossesijt
competition (and less cooperation) among peers of the same
þ bBF FemaleShareBossesijt  Femalei sex or from women in lower ranks facing greater competi-
þ eijt : tion for scarce sex-specific resources such as female mentors
and sponsors.
The variable FemaleSharePeers is the female share of The fact that we find opposite effects of female peers and
worker i’s peers at the same rank, plant j, and year t. bosses helps rule out alternative stories for the positive
WOMEN HELPING WOMEN? 773

TABLE 2.—GENDER SPILLOVERS IN PROMOTIONS AND MOBILITY


(1) (2) (3) (4)
Any promotion
Female  Female Boss Share 0.020*** 0.019*** 0.018*** 0.021***
[0.0044] [0.0047] [0.0047] [0.0095]
Female  Female Peer Share 0.060*** 0.060*** 0.062*** 0.039***
[0.0054] [0.0057] [0.0057] [0.011]
Female Boss Share 0.0048 0.0058 0.0054 0.0036
[0.0037] [0.0049] [0.0049] [0.0072]
Female Peer Share 0.050*** 0.036*** 0.037*** 0.030***
[0.0048] [0.0059] [0.0059] [0.009]
N 597,552 597,552 597,552 597,552
R2 0.050 0.073 0.073
Internal promotion
Female  Female Boss Share 0.022*** 0.019*** 0.019*** 0.032***
[0.0040] [0.0043] [0.0043] [0.0088]
Female  Female Peer Share 0.055*** 0.052*** 0.053*** 0.033***
[0.0051] [0.0053] [0.0053] [0.011]
Female Boss Share 0.0019 0.0068 0.0065 0.0077
[0.0033] [0.0044] [0.0044] [0.0065]
Female Peer Share 0.045*** 0.031*** 0.031*** 0.0308***
[0.0045] [0.0056] [0.0056] [0.0089]
N 597,552 597,552 597,552 597,552
R2 0.041 0.061 0.061
Stay at plant
Female  Female Boss Share 0.015* 0.0044 0.0046 0.0027
[0.0080] [0.0068] [0.0068] [0.0120]
Female  Female Peer Share 0.045*** 0.012 0.013 0.006
[0.010] [0.0086] [0.0086] [ 0.0130]
Female Boss Share 0.016** 0.0016 0.0017 0.0072
[0.0082] [0.0080] [0.0080] [ 0.0117]
Female Peer Share 0.031*** 0.0032 0.0038 0.0094
[0.0093] [0.0098] [0.0098] [0.0130]
N 597,552 597,552 597,552 597,552
R2 0.32 0.44 0.44
Basic controls including rank FE Yes Yes Yes Yes
Plant FE No Yes Yes Yes
Children FE No No Yes Yes
Individual FE No No No Yes
OLS estimates with standard errors clustered at the plant-rank-year level. Female Boss Share is the female share of workers in the next highest rank at the same plant-year. Peer Share is for workers at the same rank
in the same plant-year. Outcome variables are measured as changes from period t to t þ 1. The outcome in the top panel is an indicator for having an increase in rank, with or without a change in workplace. The out-
come in the middle panel is an indicator for a rank increase within the same plant. The outcome in the bottom panel is an indicator for changing plants, with or without a change in rank. Basic controls in all columns
are measured in period t and include year, rank, industry, occupation, age, and years of schooling fixed effects, as well as quadratic controls for experience and tenure, a linear control for rank-specific tenure, and an
indicator for part-time status. Significant at ***1%, **5%, *10%.

spillovers. Specifically, the pattern is not consistent with that is related to the female share in a rank and overall
workers sorting based on workplace-specific gender-related lower promotion opportunities, which would be the case if
omitted variables (such as female friendliness or skill in women tended to sort into dead-end job groups identifiable
identifying and recruiting female talent) that create spurious by their work plant, rank, and year combination.
correlations between female representation at all levels, We also conducted a wide range of robustness checks
including bosses and peers, and promotion outcomes for that all confirmed the main findings. These are described in
women. detail in Kunze and Miller (2014). One concern is that
Although female bosses are associated with higher pro- female- and male-dominated ranks differ in size, absolutely
motion rates for female workers, they appear to have no sig- or relative to the next highest rank, and that these size dif-
nificant effects on promotion rates for males. This gender ferences constrain the available slots for promotions. We
difference provides evidence against the presence of an address this by adding controls for the size of the current
omitted variable (time-varying, because our model includes and the next highest ranks. Another concern is that the
plant fixed effects) that is related to promotion rates overall effects of female peers in particular are coming from larger
(such as corporate growth and expansion) and to female gender gaps in promotion at lower ranks, which we address
boss shares (e.g., if growing firms are able to increase diver- by adding a full set of interactions between the Female and
sity at higher ranks more rapidly). Unlike the zero effect of rank indicators. We also account for the possibility that
female bosses on male promotion rates, female peers are women are disproportionately working in occupational
estimated to have a positive effect on male promotion rates. groups with limited promotion opportunities by controlling
These positive effects for men also suggest that the negative for the share of workers in the next highest rank in the orga-
peer effects on women are not driven by an omitted variable nization from the worker’s current occupational group. We
774 THE REVIEW OF ECONOMICS AND STATISTICS

also found that our estimates are robust to controlling for leadership continues to present barriers to women’s advance-
plant-by-year, plant-by-rank, or rank-by-year fixed effects. ment. It also suggests that policies that promote greater
The middle panel reports estimates using the narrower female representation in corporate leadership will have spill-
promotion outcome that focuses on internal promotions over benefits to women in lower ranks. However, because we
within the same plant. The point estimates for the gender focus on measuring spillovers within organizations, our
spillovers are consistent in sign between the two panels, estimates may understate the overall importance of gender
with equal or larger coefficients for female bosses and spillovers by failing to capture benefits to women at other
somewhat smaller ones for female peers in the middle firms. These can include mentoring that crosses firm bound-
panel. However, as we note in section IIA, the gender gap aries or women helping other women progress in their careers
in promotions, conditional on our basic controls and plant by hiring them into their firms. Future research that combines
fixed effects, is larger for any promotions (3.3 percentage data of the type used in this study with social network infor-
points) than for internal promotions only (2.6 percentage mation could illuminate those cross-firm spillovers.
points). When computed as a proportion of the overall gen-
der gap in promotions for each outcome, the gender spill-
REFERENCES
overs for both bosses and peers are in fact consistently
larger for internal promotions. The proportionally larger Aigner, Dennis J., and Glen G. Cain, ‘‘Statistical Theories of Discrimina-
tion in Labor Markets,’’ Industrial and Labor Relations Review 30
internal effects are plausible because the spillovers we (1977), 175–187.
study are largely internal to the firm. Athey, Susan, Christopher Avery, and Peter Zemsky, ‘‘Mentoring and
The results in the bottom panel of table 2 show no signifi- Diversity,’’ American Economic Review 90 (2000), 765–786.
Bagues, Manuel F., and Berta Esteve-Volart, ‘‘Can Gender Parity Break
cant gender spillovers in the probability of staying at the the Glass Ceiling? Evidence from a Repeated Randomized Experi-
same workplace, after plant fixed effects are included in the ment,’’ Review of Economic Studies 77 (2010), 1301–1328.
model (columns 2 to 4). The significant spillover coeffi- Blau, Francine D., and Jed L. DeVaro, ‘‘New Evidence on Gender Differ-
ences in Promotion Rates: An Empirical Analysis of a Sample of
cients in column 1 seem to suggest that there is some sort- New Hires,’’ Industrial Relations 46 (2007), 511–550.
ing out of workplaces based on gender compositions of Booth, Alison L., Marco Francesconi, and Jeff Frank, ‘‘A Sticky Floors
peers and bosses. However, their dramatic reduction in size Model of Promotion, Pay, and Gender,’’ European Economic
Review 47 (2003), 295–322.
and significance in the latter two columns indicates that this Cardoso, Ana, and Rudolf Winter-Ebmer, ‘‘Mentoring and Segregation:
sorting is captured with plant fixed effects. As discussed Female-Led Firms and Gender Wage Policies,’’ Industrial and
above, these same fixed effects leave the spillover effects Labor Relations Review 64 (2010), 143–163.
Dezs}o, Cristian L., David Gaddis Ross, and Jose Uribe, ‘‘Is There an
on promotions unchanged. Implicit Quota on Women in Top Management? A Large-Sample
Statistical Analysis,’’ Strategic Management Journal 37 (2016),
98–115.
IV. Conclusion Flabbi, Luca, Mario Macis, Andrea Moro, and Fabiano Schivardi, ‘‘Do
Female Executives Make a Difference? The Impact of Female
This paper uses unique data on the gender composition Leadership on Gender Gaps and Firm Performance,’’ IZA discus-
of workplaces within hierarchical ranks from an eleven- sion paper 8602 (2014).
Giuliano, Laura, David I. Levine, and Jonathan Leonard, ‘‘Racial Bias in
year employer-employee matched panel on white-collar the Manager-Employee Relationship: An Analysis of Quits, Dis-
workers at over 4,000 workplaces in Norway to study how missals, and Promotions at a Large Retail Firm,’’ Journal of
Human Resources 46 (2011), 26–52.
gender differences in promotion rates are affected by the Gneezy, U., M. Niederle, and A. Rustichini, ‘‘Performance in Competitive
presence of female bosses and female peers. Several theories Environments: Gender Differences,’’ Quarterly Journal of Eco-
predict that increasing female leadership can improve out- nomics 118 (2003), 1049–1074.
Ibarra, Herminia, Nancy M. Carter, and Christine Silva, ‘‘Why Men Still
comes for lower-ranking women: lower-ranking women Get More Promotions Than Women,’’ Harvard Business Review
may gain access to better mentors and role models and pro- 88 (September 2010), 80–85.
fessional networks. Consistent with this prediction, we find Jones, David R., and Gerald H. Makepeace, ‘‘Equal Worth, Equal Oppor-
tunities: Pay and Promotion in an Internal Labour Market,’’ Eco-
that higher shares of female workers at the next highest nomic Journal 106 (1996), 401–409.
rank are associated with significantly smaller gender gaps Kanter, Rosabeth. M., Men and Women of the Corporation (New York,
in promotion. This is not due to higher relative promotion NY: Basic Books, 1977).
Karaca-Mandic, Pinar, David Powell, and Nicole Maestas, ‘‘Peer Groups
rates for women overall at firms that hire more women in and Employment Outcomes: Evidence Based on Conditional Ran-
all ranks (because they are more ‘‘female friendly’’). dom Assignment in the United States Army,’’ working paper
Rather, we find that having a greater share of female (2013).
Koenig, Anne M., Alice H. Eagly, Abigail A. Mitchell, and Tiina Risti-
coworkers at the same plant and rank actually depresses kari, ‘‘Are Leader Stereotypes Masculine? A Meta-Analysis of
promotion rates for women, relative to men. This negative Three Research Paradigms,’’ Psychological Bulletin 137 (2011),
effect may be caused by greater competition within gender 616–642.
Kunze, Astrid, and Amalia R. Miller, ‘‘Women Helping Women? Evi-
(either between men or women) among peers, either for dence from Private Sector Data on Workplace Hierarchies,’’
promotions or for gender-specific mentoring and support. NBER working paper 20761 (2014).
The finding that greater female representation at higher Kurtulus, Fidan Ana, and Donald Tomaskovic-Devey, ‘‘Do Female Top
Managers Help Women to Advance? A Panel Study Using EEO-1
ranks narrows the gender gap in promotion rates at lower Records,’’ Annals of the American Academy of Political and Social
ranks supports the theory that male dominance in corporate Science 639 (2012), 173–197.
WOMEN HELPING WOMEN? 775

Lønnsstatistikk for funksjonærer (1997). utarbeidet av Næringslivets Ransom, Michael, and Ronald L. Oaxaca, ‘‘Intrafirm Mobility and Sex
Hovedorganisasjon omr ade for arbeidsmarked og Statistikk. ISSN Differences in Pay,’’ Industrial and Labor Relations Review 58
0333-2608. Available annually. (2005), 219–237.
Matsa, David A., and Amalia R. Miller, ‘‘Chipping Away at the Glass Staines, Graham L., Carol Tavris, and Toby E. Jayarante, ‘‘The Queen
Ceiling: Gender Spillovers in Corporate Leadership,’’ American Bee Syndrome,’’ Psychology Today 7 (1974), 55–60.
Economic Review 101 (2011), 635–639. Tate, Geoffrey, and Liu Yang, ‘‘Female Leadership and Gender Equity:
——— ‘‘A Female Style in Corporate Leadership? Evidence from Quo- Evidence from Plant Closure,’’ Journal of Financial Economics
tas,’’ American Economic Journal: Applied Economics 5 (2013), 117 (2015), 77–97.
136–169. Valian, Virginia, Why So Slow? The Advancement of Women (Cambridge,
——— ‘‘Workforce Reductions at Women-Owned Businesses in the Uni- MA: MIT Press, 1998).
ted States,’’ Industrial and Labor Relations Review 67 (2014), Winter-Ebmer, Rudolf, and Josef Zweimuller, ‘‘Unequal Assignment and
422–452. Unequal Promotion in Job Ladders,’’ Journal of Labor Economics
Olson, Craig A., and Brian E. Becker, ‘‘Sex Discrimination in the Promo- 15 (1997), 43–71.
tion Process,’’ Industrial and Labor Relations Review 36 (1983), Zander, Christina, ‘‘Even Scandinavia Has a CEO Gender Gap,’’ Wall
624–641. Street Journal, May 21, 2014.

You might also like