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

48 Pages Posted: 18 Sep 2011

See all articles by Nina Smith

Nina Smith

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics

Valdemar Smith

Aarhus University - School of Business and Social Sciences

Mette Verner

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM)

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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.

Keywords: promotion, top executive positions, statistical discrimination

JEL Classification: G34, J16, J24, M51

Suggested Citation

Smith, Nina and Smith, Valdemar and Verner, Mette, Why are So Few Females Promoted into CEO and Vice-President Positions? Danish Empirical Evidence 1997-2007. IZA Discussion Paper No. 5961, Available at SSRN: https://ssrn.com/abstract=1929661 or http://dx.doi.org/10.2139/ssrn.1929661

Nina Smith (Contact Author)

Aarhus University - Department of Economics and Business Economics ( email )

Universitetsparken
DK-8000 Aarhus C
Denmark
+45 8948 6413 (Phone)
+45 8615 5175 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Valdemar Smith

Aarhus University - School of Business and Social Sciences ( email )

Nordre Ringgade 1
Aarhus C, DK-8000
Denmark

Mette Verner

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM) ( email )

DK-8210 Aarhus V
Denmark
+45 8948 6416 (Phone)
+45 8615 5175 (Fax)

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