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Why Are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007

Author

Listed:
  • Smith, Nina

    (Aarhus University)

  • Smith, Valdemar

    (Aarhus School of Business)

  • Verner, Mette

    (Danish School of Media and Journalism)

Abstract

In most OECD countries, only very few women succeed in reaching top executive positions. In this paper, the probability of promotion into VP and CEO positions is estimated based on employer-employee data on all Danish companies observed during the period 1997-2007. After controlling for a large number of family-related variables, including take-up history of maternity and paternity leave and proxies for 'female-friendly' companies, there is still a considerable gap in the promotion probabilities for CEO positions, but not for VP positions. Thus, the results cannot confirm recent theories on 'belief flipping' or disappearance of statistical discrimination against women who succeed getting into career track positions. The results reflect that the hiring decision and the decision to enter a top position as 'number one', i.e. CEO, in the organization is very different from the decision to hire or become VP, i.e. 'number two' or lower.

Suggested Citation

  • Smith, Nina & Smith, Valdemar & Verner, Mette, 2011. "Why Are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007," IZA Discussion Papers 5961, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5961
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    Cited by:

    1. Parrotta, Pierpaolo & Smith, Nina, 2013. "Why So Few Women on Boards of Directors? Empirical Evidence from Danish Companies 1997-2007," IZA Discussion Papers 7678, Institute of Labor Economics (IZA).
    2. Geiler, P.H.M., 2012. "Essays on executive remuneration contracting : Managerial power, corporate payout, and gender discrimination," Other publications TiSEM 3c536b0d-bce3-4d1a-9f6f-3, Tilburg University, School of Economics and Management.
    3. Parrotta, Pierpaolo & Smith, Nina, 2013. "Female-Led Firms: Performance and Risk Attitudes," IZA Discussion Papers 7613, Institute of Labor Economics (IZA).
    4. Juanna Joensen, 2012. "Math and Gender: What if Girls Do Math?," 2012 Meeting Papers 992, Society for Economic Dynamics.
    5. Nina Smith & Valdemar Smith & Mette Verner, 2013. "Why are So Few Females Promoted into CEO and Vice President Positions? Danish Empirical Evidence, 1997–2007," ILR Review, Cornell University, ILR School, vol. 66(2), pages 380-408, April.
    6. Herman Sahni & Christian Nsiah, 2018. "The Impact of Firm Financial Efficiency on Executive Compensation of United States Apparel Stores Industry: An Application of Panel Data Envelopment Analysis," International Business Research, Canadian Center of Science and Education, vol. 11(6), pages 165-184, June.
    7. Joensen, Juanna Schrøter & Nielsen, Helena Skyt, 2013. "Math and Gender: Is Math a Route to a High-Powered Career?," IZA Discussion Papers 7164, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    promotion; top executive positions; statistical discrimination;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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