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The Old Boys' Club: Schmoozing and the Gender Gap

Resource type
Authors/contributors
Title
The Old Boys' Club: Schmoozing and the Gender Gap
Abstract
Offices are social places. Employees and managers take breaks together and talk about family and hobbies. In this study, we show that employees' social interactions with their managers can be advantageous for their careers, and that this phenomenon contributes to the gender pay gap. We use administrative and survey data from a large financial institution and exploit quasi-random variation induced by the rotation of managers. We provide evidence that when employees have more face-to-face interactions with their managers, they are promoted at a higher rate. This mechanism could explain a third of the gender gap in promotions at this firm.
Publication
American Economic Review
Volume
113
Issue
7
Pages
1703-40
Date
2023-07
Citation
Cullen, Z., & Perez-Truglia, R. (2023). The Old Boys’ Club: Schmoozing and the Gender Gap. American Economic Review, 113, 1703–1740.
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