A new working paper, authored by scholars at the University of Chicago, Stanford University, and the University of Minnesota and published by the National Bureau of Economic Research, presents evidence that women in the financial services industry receive harsher punishments than men for similar offenses.
According to the study, following an incidence of misconduct, female advisers are 20 percent more likely to lose their jobs and 30 percent less likely to find new jobs relative to male advisers. This is true despite the fact that males are more likely to commit acts of misconduct.
“Although men commit misconduct at a rate that is three times higher than women, women face substantially harsher punishments both by the firms that employ them, and other potential employers in the industry,” the study stated. “The financial advisory industry is willing to give male advisers a second chance, while female advisers are likely to be cast from the industry.”
The paper, “When Harry Fired Sally: The Double Standard in Punishing Misconduct,” may be accessed here.