The Effect of the External Labor Market on the Gender Pay Gap among Executives

Author:

Quintana-García Cristina,Elvira Marta M.1

Affiliation:

1. Cristina Quintana-García is an Associate Professor of Management and Director of the Santander Center for Corporate Social Responsibility at the University of Málaga (Spain). Marta M. Elvira is the Puig Chair Professor of Global Leadership Development and Associate Dean for Research at IESE Business School.

Abstract

To date, few empirical studies have explored potential differences in the effects of external labor market hiring on the compensation of male and female managers. Using longitudinal data from a sample of public high-technology firms on individual top executives’ total compensation in the United States, and the separate components of base and variable pay, the authors study the effects of being an external hire for men and women. The results suggest that women who are external labor market hires are disadvantaged, in both base and variable compensation, compared with internal placements. The analyses also provide some evidence that having greater representation of women in top positions reduces the disadvantaging effects for women of being an external hire.

Publisher

SAGE Publications

Subject

Management of Technology and Innovation,Organizational Behavior and Human Resource Management,Strategy and Management

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