Socially Responsible Investment and Gender Equality in the United States Census
August 2024
Working Paper Number:
CES-24-44
Abstract
With administrative data, we test whether institutional ownership with a social preference is related to employee-level gender equality. We show that the gender pay gap, which is an unexplained part of the lower wages of female employees, does not have a significant relation with socially responsible investments. Next, we show that female directorship strengthens the relation between socially responsible investments and the gender pay gap. When there are female directors, socially responsible investments have a robust correlation with a lower gender pay gap. This is because female directorship alleviates information asymmetry in gender equality.
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investment,
earnings,
organizational,
financial,
finance,
investor,
shareholder,
woman,
discrimination,
equity,
institutional,
gender
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Review of Economic Studies,
Journal of Political Economy,
Center for Research in Security Prices,
Journal of Economic Literature,
Longitudinal Employer Household Dynamics,
Ohio State University,
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