Gender and Managerial Job Mobility: Career Prospects for Executives Displaced by Acquisitions

Abstract

We investigate how men and women fare in the managerial labor market in the plausibly exogenous circumstance of their firms being acquired when most target-firm managers (about 90%) are displaced. These career disruptions result in a larger drop in rank and compensation for female managers, despite similar job search attributes. Gender differences are mitigated when hiring firms have more women in upper-echelon positions. Rich managerial experience and external board service also reduce gender-related differences. Overall, results point to a (implicit) gender penalty in terms of managerial job mobility, but also indicate contexts in which penalty is alleviated, and even reversed.