TY  - GEN
AB  - Empirical studies show that female workers are under-represented in highest hierarchical
positions of companies, which is known as the glass-ceiling effect. In this study we investigate
the relationship between social networks and the glass-ceiling effect. Specifically, we develop
an equilibrium search and matching model where job ladders consist of three hierarchical
levels and social networks are generated endogenously. Male and female workers move up
in the hierarchical ladder via job-to-job transitions between firms and internal promotions
within firms. They also accumulate experience which is a necessary requirement for applying
to jobs in the highest hierarchical level. Open vacancies can be filled by formal matching
of applicants to jobs or by referrals, which implies that senior workers recommend their
social contacts for the job. Social networks exhibit gender homophily, which reflects the fact that social ties are more likely to be formed between workers of the same gender. In
a setting when female workers are the minority, there are too few female contacts in the
social networks of their male colleagues. This disadvantage implies that female workers
are refereed less often for the jobs and under-represented in senior hierarchical positions of
firms. We show that referrals via homophilous social networks can explain part of the total
wage gap stemming from the glass-ceiling effect in Germany (6:4%). This mechanism is
amplified by more hierarchical firm structures, stronger clustering of social networks, and
earlier promotion times.
DA  - 2018
KW  - glass-ceiling effect
KW  - networks
KW  - discrimination
KW  - theory of the firm
KW  - promotions
KW  - search-and-matching labor market
LA  - eng
PY  - 2018
SN  - 0931-6558
TI  - Social Networks, Promotions, and the Glass-Ceiling Effect
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29308638
Y2  - 2024-11-22T01:33:11
ER  -