The gender gap in the business elite

Abstract

Using unique Swedish register data on all employees in large private companies, we study trends in the gender composition of top wage employees from 1993 to 2007. The analyses reveal that the likelihood of women holding top wage positions has more than doubled since the early 1990s, but men are still markedly over-represented in this group of employees. We focus on educational choices, considering level and field of study as well as university attended. One important conclusion is that, although education is important in reaching a top wage position, field of education and university attended only marginally explain the gender gap. However, relative to other women, having a career signalling degree (i.e. economics, law or engineering) from a more prestigious university helps women. Dividing the sample into different cohorts indicates that the gender gap is partly a cohort effect, i.e. it is smaller among those born in the 1960s compared to cohorts born in the 1940s and 1950s. It should be noted that there is still a gender gap among employees born in the 1960s and that the gap widens after age 30. Future studies should focus more deeply on this family-related ‘period of divergence’.

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