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Social networks, promotions, and the glass‐ceiling effect

Neugart, Michael ; Zaharieva, Anna (2024)
Social networks, promotions, and the glass‐ceiling effect.
In: Journal of Economics & Management Strategy
doi: 10.1111/jems.12603
Article, Bibliographie

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Abstract

Empirical studies show that women have lower chances of reaching top management positions, known as the glass‐ceiling effect. To study women's careers, we develop a search and matching model where job ladders consist of three hierarchical levels and workers can progress in the career by means of internal promotions or by transitioning to another firm. Both, formal applications and referral hiring via endogenous social networks can be used for moving between firms. We show that when female workers are minority in the labor market and social link formation is gender‐biased (homophilous), there are too few female contacts in the social networks of their male colleagues. This disadvantage implies that female workers are referred less often and, thereby, become underrepresented in top‐level management positions of firms relative to their fraction in the market. Our main theoretical results are consistent with the empirical evidence based on the German Socio‐Economic Panel.

Item Type: Article
Erschienen: 2024
Creators: Neugart, Michael ; Zaharieva, Anna
Type of entry: Bibliographie
Title: Social networks, promotions, and the glass‐ceiling effect
Language: English
Date: 12 July 2024
Place of Publication: Boston, Mass.
Publisher: Wiley
Journal or Publication Title: Journal of Economics & Management Strategy
DOI: 10.1111/jems.12603
Corresponding Links:
Abstract:

Empirical studies show that women have lower chances of reaching top management positions, known as the glass‐ceiling effect. To study women's careers, we develop a search and matching model where job ladders consist of three hierarchical levels and workers can progress in the career by means of internal promotions or by transitioning to another firm. Both, formal applications and referral hiring via endogenous social networks can be used for moving between firms. We show that when female workers are minority in the labor market and social link formation is gender‐biased (homophilous), there are too few female contacts in the social networks of their male colleagues. This disadvantage implies that female workers are referred less often and, thereby, become underrepresented in top‐level management positions of firms relative to their fraction in the market. Our main theoretical results are consistent with the empirical evidence based on the German Socio‐Economic Panel.

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Classification DDC: 300 Social sciences > 330 Economics
300 Social sciences > 360 Social problems , social services, insurance
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Fachgebiet Finanzwissenschaft und Wirtschaftspolitik
Date Deposited: 20 Aug 2024 07:36
Last Modified: 20 Aug 2024 07:36
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