Sex and salary

Abstract

Purpose – This paper aims to develop and test hypotheses on determinants of supply chain managers’ salaries. While women make up about half the workforce, there is evidence in the trade press that they receive far less than half of the compensation. Sex of the manager and size of his or her organization are among the predictors of salary. Design/methodology/approach – The hypotheses are tested using regression analysis of data from a survey of supply chain managers in Canada. This technique enables testing for a gender effect, while controlling for the effects of other factors. Findings – Seven variables are found to be significant predictors of supply chain manager salaries. Smaller companies pay lower salaries. Small business supply chain/logistics managers working longer hours with a professional designation, more experience, greater budgetary responsibility and greater share of compensation coming as a bonus earn higher salaries. Finally, male small business supply chain managers earn more than their female counterparts. Research limitations/implications – The piece includes a discussion of limitations and future research opportunities into the gender salary gap. Practical implications – There are implications for small businesses wanting to hire supply chain managers, and for female (and male) managers looking for work. Social implications – This paper presents evidence of possible gender discrimination against half the population. The potential social implications are tremendous. Originality/value – This is a unique piece of research in testing theory-driven hypotheses about supply chain salaries, especially by including gender and organizational size as predictors.