Knowledge Teams, Careers and Gender

Abstract: We investigate the determinants of promotions in a financial institution to uncover the micro mechanisms that lead to promotion gaps in knowledge work. Bankers are highly educated; at entry in the internal labor market, more than 50% are women. The promotion rate of women is lower than the one of men, in particular, at the beginning of careers. Bankers work in project teams together with lawyers and economists. Analyzing almost 10,000 investment projects, we find a substantial promotion gap for women. Crucial for careers are assignments to the job of operation leader, which provide visibility to the upper echelons of the organization. Assignments to these jobs which is carried out by supervisors, however, favors men.