Gender, careers and peers' gender mix

Elena Ashtari Tafti, Mimosa Distefano and Tetyana Surovtseva

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We use Italian Social Security data to study how the gender composition of a worker's professional network influences their career development. By exploiting variation within firms, occupations, and labor market entry cohorts, we find that young women starting their careers alongside a higher share of female peers experience lower wage growth, fewer promotions and increased transitions into non-employment. In contrast, male workers appear unaffected. The analysis reveals that these gender-specific effects are largely driven by structural differences in the networks of men and women. Networks predominantly composed of women appear to be less effective in the labor market. Women, who experience higher attrition and lower promotion rates, have fewer connections to employment opportunities, and their connections tend to be less valuable. When accounting for these differences, we find that connections among female peers offer a crucial safety net during adverse employment shocks. Our findings highlight the critical role of early-career peers and provide a new perspective on the barriers to career advancement for women

Keywords: gender peer effects; networks; labor market entrants; career progression (search for similar items in EconPapers)
Date: 2024-06-14
New Economics Papers: this item is included in nep-gen, nep-lab, nep-net and nep-ure
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