Abstract

The gender gap is higher at the top end of the earnings distribution. Private-sector senior executives inhabit a male-dominated milieu with high regulation distance. Women here have the highest skills and labor market power, yet they also experience one of the highest internal gender pay gaps. The pay of chief executive officers (CEOs) is shaped by institutions and norms that include four crucial, male-dominated ideas about care and family responsibilities, the “ideal manager,” social behavior, and pay expectations. These norms create gendered performance assessments and opportunities, and access to power resources. The intersection of regulation distance and male domination means pay and conditions are set largely independent of external constraints, but heavily influenced by norms that, along with the social capital male CEOs possess, enable high-level gender gaps.

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