The gender pay gap is well-documented, yet its source remains debated. This column uses data from Portuguese firms to analyse the role of professional networks in explaining the gender pay gap among top executives. The component of the pay gap which is unexplained by age, tenure, or education has remained persistently large over the period 1986 to 2017, reflecting a gender bias which can be partly explained by networks. Both female and male managers benefit most from connections to managers of their own gender. This implies positive spillovers from policies that favour increased female presence in leadership positions.
Nothing contributes so much to the prosperity and happiness of a country as high profits