Frontiers in Social Science features new research in the flagship journals of the Social Science Research Council’s founding disciplinary associations. Every month we publish a new selection of articles from the most recent issues of these journals, marking the rapid advance of the frontiers of social and behavioral science.

Male manager/employee social relationships contribute to gender pay gap

In an event study leveraging data from a large commercial bank, male employees who transition from a female to a male manager spend more social time with their managers, and receive more promotions, relative to comparable female employees.

Author(s)
Zoë Cullen and Ricardo Perez-Truglia
Journal
American Economic Review
Citation
Cullen, Zoë, and Ricardo Perez-Truglia. 2023. "The Old Boys' Club: Schmoozing and the Gender Gap." American Economic Review, 113 (7): 1703-40. DOI: 10.1257/aer.20210863 Copy
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.

Expanding the availability of public services can reduce discrimination

In a difference in differences design, a school reform in Denmark enabling high school expansions reduced disparities in admission rates between majority and non-majority students, with larger effects in oversubscribed schools.

Author(s)
Thorbjørn Sejr Guul
Journal
American Political Science Review
Citation
GUUL, T. (2023). Political Solutions to Discriminatory Behavior. American Political Science Review, 117(2), 719-733. doi:10.1017/S0003055422000648 Copy
Abstract

Discriminatory treatment of minorities by public authorities remains a serious challenge and breaks with the central principles of impartiality. However, little research examines how discrimination can be reduced through political means. This article argues that discrimination occurs when the perceived marginal cost of serving a minority citizen exceeds the funding per user and/or when excess of demand forces the provider to prioritize which citizens to serve. This also suggests that increasing the funding per user and increasing supply to meet demand might reduce differential treatment. These predictions are tested in a high school enrollment system where the funding is linked to the number of students enrolled. Unique, fine-grained administrative data show that minority applicants are 9 percentage points less likely to be enrolled in their preferred high school. More importantly, an administrative reform shows how increasing the supply-side flexibility and pay per user cuts the difference in half.

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