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  5. Special Topics: Finance and Gender
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Special Topics: Finance and Gender

Paper Session

Friday, Jan. 6, 2023 10:15 AM - 12:15 PM (CST)

Sheraton New Orleans, Borgne
Hosted By: American Finance Association
  • Chair: Heather Tookes, Yale University

Gender and Access to Credit Cards

Sudheer Chava
,
Georgia Institute of Technology
Rohan Ganduri
,
Emory University
Nikhil Paradkar
,
University of Georgia
Linghang Zeng
,
Babson College
Yafei Zhang
,
Georgia Institute of Technology

Abstract

Using unique credit bureau data on first-time credit card borrowers across the U.S., we find that women are 30% more likely than men to open a retail credit card as opposed to a general-purpose credit card when they first access the credit card market. This difference is not explained by observable credit quality, the timing of credit card opening, location, and other observable individual characteristics. This gender difference in the propensity to open retail cards is smaller among consumers with more education and credit-related experience, and is driven by the relatively greater application rates for retail cards (as opposed to approval rates) by women. This initial gender difference in obtaining a retail card is further associated with a gender gap in future credit limits, balances, defaults, and credit scores.

Gender Bias in Promotions: Evidence from Financial Institutions

Ruidi Huang
,
Southern Methodist University
Erik Mayer
,
Southern Methodist University
Darius Miller
,
Southern Methodist University

Abstract

We test for gender bias in promotions at financial institutions using two central predictions of Becker’s (1957, 1993) model: firms with bias will (1) raise the promotion bar for marginally promoted female workers, and (2) incur costs from forgoing efficient employment practices. We find support for both of these predictions using a new nationwide panel of mortgage loan officers and their branch managers, encompassing approximately 72,000 workers from over 1,000 shadow banks from 2014 to 2019. Overall, our findings provide evidence that gender bias is an important factor in gender disparities at financial institutions.

Gender Quotas and Support for Women in Board Elections

Marina Gertsberg
,
University of Melbourne
Johanna Mollerstrom
,
George Mason University
Michaela Pagel
,
Columbia University

Abstract

We study shareholder support for corporate board nominees before and after the 2018 California gender quota. Pre-quota, new female nominees received greater support than new male nominees, consistent with women being held to a higher standard. Post-quota, as the number of women increased, support for new (mandated) female nominees decreased to the same level but not below the support that new male nominees enjoy. Still, share prices reacted negatively to the quota. We show that this reaction was concentrated in firms that did not turn over their least-supported male directors when adding women to comply with the quota.

Women in the Financial Sector

Spyridon Lagaras
,
University of Pittsburgh
Maria-Teresa Marchica
,
University of Manchester
Elena Simintzi
,
University of North Carolina-Chapel Hill
Margarita Tsoutsoura
,
Cornell University

Abstract

We examine the sources and evolution of the gender pay gap in finance, using
administrative micro data from the U.K. for 1997-2019. We show a persistently
larger gender pay gap in finance, compared to other sectors. Exploiting employees
who switch firms, we find the gender pay gap in finance is predominantly explained
by more skilled male employees sorting into finance relative to other sectors. The
gender pay gap in finance is relatively lower for flexible occupations, in firms that
offer childcare benefits and in more female friendly environments. Over time,
higher investment in human capital for women and sorting in high-skilled occupations
within the sector as well as policy interventions have reduced the gender pay
gap in finance.

Discussant(s)
Scott Nelson
,
University of Chicago
Marlène Koffi
,
University of Toronto
Simi Kedia
,
Rutgers University
Janet Gao
,
Indiana University
JEL Classifications
  • G0 - General