Gender Gaps and Racial Disparities in Labour Market Penalties for Financial Misconduct

Arbeitspapier

We consider the labour market for financial advisers in the US using a matched employer-employee data set over the period 2008-2018, in order to examine gender gaps and racial disparities in labour market penalties for financial misconduct. We first show that the measurement of labour market penalties for financial misconduct plays a central role and the interdependence across misconduct-categories (e.g. customer disputes, regulatory actions, terminations) is gender- and racespecific. Accounting for this, we find that there are little gender gaps in job separation following misconduct and in the incidence of employer-initiated terminations conditional on misconduct-related events. In contrast, we find that racial minorities are at least 20% more likely to leave a firm following customer disputes or regulatory actions compared to their majority counterparts, and also that the racial minorities are 25% more likely to receive terminations. This remains true even after controlling for their education.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers in Economics and Statistics ; No. 2020-17

Classification and Topics

• Classification: Wirtschaft ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Professional Labor Markets; Occupational Licensing ; Labor Discrimination ; Firm Organization and Market Structure
• Subject: Financial Advisers ; Misconduct ; Gender Gap ; Racial Inequality ; Discrimination

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Honda, Jun
• Event: Veröffentlichung
• (who): University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
• (where): Innsbruck
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/238241
• Last update: 10.03.2025, 11:43 AM CET