The old boy network: the impact of professional networks on remuneration in top executive jobs

We investigate the impact of social networks on earnings using a dataset of over 20,000 senior executives of European and US firms. The size of an individual's network of influential former colleagues has a large positiv
We investigate the impact of social networks on earnings using a dataset of over 20,000 senior executives of European and US firms. The size of an individual's network of influential former colleagues has a large positive association with current remuneration. An individual at the 75th percentile in the distribution of connections could expect to have a salary nearly 20 per cent higher than an otherwise identical individual at the median. We use a placebo technique to show that our estimates reflect the causal impact of connections and not merely unobserved individual characteristics. Networks are more weakly associated with women's remuneration than with men's. This mainly reflects an interaction between unobserved individual characteristics and firm recruitment policies. The kinds of firm that best identify and advance talented women are less likely to give them access to influential networks than are firms that do the same for the most talented men.
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Metadaten
Author:Marie Lalanne, Paul Seabright
URN:urn:nbn:de:hebis:30:3-393006
URL:http://ssrn.com/abstract=2717988
DOI:http://dx.doi.org/10.2139/ssrn.2717988
Parent Title (English):SAFE working paper series ; No. 123
Series (Serial Number):SAFE working paper series (123)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Date of Publication (online):2016/01/19
Date of first Publication:2016/01/19
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2016/02/02
Tag:executive compensation; gender wage gap; placebo technique; professional networks
Pagenumber:60
HeBIS PPN:372417698
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:A14 Sociology of Economics
J16 Economics of Gender; Non-labor Discrimination
J31 Wage Level and Structure; Wage Differentials
J33 Compensation Packages; Payment Methods
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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