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Thursday, September 20, 2012

Performance Support Bias and the Gender Pay Gap among Stockbrokers

Janice Fanning Madden, Professor of Urban Studies, Regional Science, Sociology and Real Estate, University of Pennsylvania

In this seminar, we will analyze the organizational mechanisms leading to a gender pay gap among stockbrokers in two large national retail stockbrokerages. The pay gap is the result of gender differences in sales, as both firms pay entirely by sales commissions. The research we will examine develops and tests whether performance-support bias, whereby women receive inferior sales support and sales assignments, causes the commissions gap. Newly available data on the brokerages’ internal transfers of accounts among brokers now allows measurement of performance-support bias. Gender differences in the quality and quantity of transferred accounts provide a way to measure gender differences in the assignment of sales opportunities and support. Sales generated from internally transferred accounts, controlling for the accounts’ sales histories, provide a “natural experiment” testing for gender differences in sales capacities. The evidence for performance-support bias is: (1) Women are assigned inferior accounts; and (2) women produce sales equivalent to men when given accounts with equivalent prior sales histories. We will discuss these results and their implications in this session.

Lunch will be provided.

An RSVP is not required as this is an open event.

  • Location:
    WAPPP Cason Seminar Room, Taubman Building, Room 102
  • Date:
    Thursday, September 20, 2012
  • Time:
    11:40 AM

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