Lecture 4: Cullen, Z., & Perez-Truglia, R. (2023).

The old boys’ club:

Schmoozing and the gender gapLinks to an external site.. American
Economic Review, 113(7), 1703-1740.

Main research question

This study investigates the impact of social interactions between employees and managers,
particularly those related to shared habits like smoking, on career outcomes and the gender
pay gap in a corporate setting.

Methodology
The research was conducted with a private commercial bank in Southeast Asia, where the
gender pay gap is 23%. The methodology used included survey data, administrative records,
and statistical techniques.

Main findings
The findings suggest that social interactions with managers can positively influence employees'
chances of receiving promotions, potentially contributing to the gender pay gap. The research
design used in the study can be applied to other contexts, and the research suggests that the
male-to-male advantage may be more pronounced in certain occupations. Rotation of managers
is common, providing an opportunity to use similar methodologies in other firms and industries
to identify prevalent male-to-male advantages. Suggestive evidence from the study indicates
that the male-to-male advantage may be more pronounced in occupations where managers and
employees work closely. Therefore study also highlights the role of face-to-face interactions
and networking in career advancement, particularly in remote work. The findings have
implications for policies aimed at reducing gender gaps in pay and leadership.
Recommendations include changes to promotion review systems, such as involving multiple
managers and standardizing the review process using objective indicators. Proposes strategies
to level opportunities for socialization, including promoting gender-neutral social activities.
Companies are urged to raise awareness of differential access to social interactions at work,
particularly the gap between women's perceptions and men's awareness. Encourages testing
policy proposals to gauge their effectiveness in reducing gender disparities in promotions.