Compensation and speed of advancement in executive careers through the internal and external labor markets by gender

1" " SMS"Milan"Strategic"Human"Capital,"Management"Practices" "and"Performance"9"Short"Paper"submitted"to:"Track A! ! COMPENSATION AND SPEED OF ADVANCEMENT IN EXECUTIVE CAREERS THROUGH THE INTERNAL AND EXTERNAL LABOR MARKETS BY GENDER Marta M. Elvira, IESE Business School Cristina Quintana-García, Universidad de Málaga Isabel Villamor, IESE Business School Women have made significant progress in the labor market but they are still underrepresented at the top management levels. Moreover, a significant pay gap exists between male and female executives. Past research on the glass ceiling has assumed that the barriers to women’s advancement in organizations reflect sex differences in internal promotion processes (Fernandez and Abraham, 2011). Recent studies have shown that gender biases also occur in the external labor market (Fernandez-Mateo and Fernandez, 2016), which increasingly influence the organizational distribution of work and rewards (Bidwell et al. 2013). Therefore, studying the frequency and effects of the link between the internal and external mobility is crucial to understand how careers advance (Bidwell and Mollick, 2015) and how gender inequality arises throughout executives’ careers. Internal and external labor market strategies may influence differently the speed of career progression and executive compensation (Quintana-García and Elvira, 2017). Researching the drivers of the speed of career advancement seems particularly relevant to women’s progress. Despite the relevance of speed of advancement for managerial and executive careers, the literature examining the determinants of such speed is limited. Particularly, gender differences in how mobility shape managerial career trajectories are underexplored. To fill this gap, our study aims at exploring whether internal and external moves have a different impact on the speed of advancement in executive careers, identifying gender differences in the influence of both mobility routes and understanding the impact of speed on compensation inequality. The proposed research question is particularly relevant in settings such as hightechnology industries and other growing sectors where the speed of career advancement seems to be unprecedented and where there is a trend toward employment relationships 2" " being determined more by external than internal labor markets (DiPrete, Goux and Maurin, 2002; Raffiee and Coff 2016). We will carry out an empirical study of executives from US public hightechnology manufacturing firms. We will draw information from several databases regarding the following variables: Demographic characteristics, education, professional trajectory,"complete career of the executives and compensation. In sum, this study aims at examining the consequences for gender inequality on executive compensation of the move toward more market-based employment. REFERENCES Bidwell, Matthew, Forrest Briscoe, Isabel Fernandez-Mateo, and Adina Sterling. 2013. The Employment Relationship and Inequality: How and Why Changes in Employment Practices are Reshaping Rewards in Organizations. The Academy of Management Annals 7(1): 61-121. Bidwell, Matthew, and Ethan Mollick. 2015. Shifts and Ladders: Comparing the Role of Internal and External Mobility in Managerial Careers. Organization Science 26(6): 1629-1645. DiPrete, Thomas A., Dominique Goux, Eric Maurin. 2002. Internal Labor Markets and Earnings Trajectories in the Post-Fordist Economy: An Analysis of Recent Trends. Social Science Research 31(2): 175-196.! Fernandez, Roberto M., and Mable Abraham. 2011. Glass Ceilings and Glass Doors? Internal and External Hiring in an Organizational Hierarchy. MIT Sloan School Working Paper number 4895-11. Fernandez-Mateo, Isabel, and Roberto M. Fernandez. 2016, in press. Bending the Pipeline? Executive Search and Gender Inequality in Hiring for Top Management Jobs. Management Science. Quintana-García, Cristina, and Marta M. Elvira. 2017, in press. The Effect of the External Labor Market on the Gender Pay Gap among Executives. ILR Review, 70(1): 132-159. Raffiee, Joseph and Russell Coff. 2016. Micro-Foundations of Firm-Specific Human Capital: When Do Employees Perceive their Skills to Be Firm-Specific? Academy of Management Journal 59(3): 766–790.