This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. Forthcoming Articles
  5. “Potential” and the Gender Promotion Gap

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

“Potential” and the Gender Promotion Gap

  • Alan Benson
  • Danielle Li
  • Kelly Shue
American Economic Review (Forthcoming)

Abstract

We show that subjective assessments of employee “potential” contribute to gender gaps in promotion and pay. Using data on 29,809 management-track employees from a large retail chain, we find that women receive substantially lower potential ratings despite receiving higher performance ratings. Differences in potential ratings account for approximately half of the gender promotion gap. Women’s lower potential ratings do not reflect accurate forecasts of future performance: women subsequently outperform male colleagues, both on average and on the margin of promotion. We highlight two mechanisms driving the gender potential gap: strategic retention and stereotyping.

Downloads