Selling Women Short: A Research Note on Gender Differences in Compensation on Wall Street

Some research has suggested that, once all forms of segregation are controlled, there is no gender gap in earnings. However, other research suggests that substantial barriers to gender equality persist even within occupations. I suggest that institutional norms and market forces that determine compensation practices are likely to produce different results across professions. I hypothesize that gender inequality will persist on Wall Street even when men and women hold identical job titles. Using a cohort sample of securities professionals with highly similar human capital characteristics, I find statistically significant gender differences in 1997 earnings, controlling for background characteristics, human capital, and segregation by area of finance. I offer possible explanations for variation among professions, emphasizing the importance of institutional practices within the securities industry.