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Gender Differences in the Effect of Employee-Manager Friendships on Salary Dynamics in CPA Firms

Author

Listed:
  • Tobol, Yossef

    (Jerusalem College of Technology (JTC))

  • Bar-El, Ronen

    (Open University of Israel)

  • Arbel, Yuval

    (School of Business, Carmel Academic Center)

  • Azar, Ofer H.

    (Ben Gurion University)

Abstract

We study the effect of employee-manager relations on salary increases. We use data obtained from a longitudinal survey, carried out among auditing team members in leading Israeli CPA firms (which are subsidiaries of American firms). Our main findings suggest that the degree of friendship with the team manager is positively correlated with the rate of the salary increase, particularly among female workers whose team manager is also a female. We also find that upon being hired to the job, male workers gain a higher return to experience compared with female workers.

Suggested Citation

  • Tobol, Yossef & Bar-El, Ronen & Arbel, Yuval & Azar, Ofer H., 2019. "Gender Differences in the Effect of Employee-Manager Friendships on Salary Dynamics in CPA Firms," IZA Discussion Papers 12707, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12707
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    References listed on IDEAS

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    More about this item

    Keywords

    gender salary gap; friendship; CPA; wage determination;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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