The Insidious Gender Promotion Gap: Gender Differences in Promotion Patterns in a Multi-Unit Bank

Abstract

Although diversity management has gained momentum, gender inequality persists in the workplace, in particular glass ceilings. We explore the drivers of gender differences in promotions using a multi-stage process model and distinguishing between supply- and demand-side factors. Analyzing nine years of personnel records of a multi-unit European bank, we find that gender differences are driven both by supply- and demand-side factors. Women are less likely to indicate a motivation to move to a new job or to a new unit within the bank than men. Nevertheless, they are just as likely to be moved to a new role once they indicate a motivation to do so. Yet these moves are less likely to represent a promotion than men’s moves. Moreover, this gender promotion gap is greater for women far from the headquarters (HQ): a) women’s motivation to change jobs is lower in the branches overall than in the HQ; b) it is the lowest in branches that are further off from the HQ; and c) gender-based inequality in promotions among those who change jobs or units is greater in the branches than in the HQ. Our findings contribute to the literature on gender inequality and career advancement by highlighting the theoretical importance of examining promotions as a multi-stage process, of disentangling supply-side and demand-side factors, and of distinguishing promotion patterns across business units.