Women CEOs who work in states with higher levels of local religiosity earn more than their male peers, according to a new study published in the Journal of Business Ethics.
The researchers sought out to determine the relationship between the appointment and compensation of women CEOs and local religiosity – a term referring to how an institutionalized religion influences the social behaviors and cultural norms in a local area. As many major religions in the American South are rooted in male hierarchal dominance, the study authors expected women executives in these states would earn less than their male counterparts.
However, they discovered just the opposite. Using data from nearly 3,000 CEO appointments in U.S. firms between 1998 and 2021 and religiosity measures from the Pew Research Center, the authors found no significant relationship between local religiosity and the likelihood of hiring women CEOs. Additionally, they found local religiosity had a positive association with women CEOs’ compensation. In more secular states, women CEOs made less than their male peers, but earned more, on average, than both men and women CEOs in highly religious areas.
Based on these insights, the authors theorize that because they are overall underrepresented in executive positions, women in these roles may be seen as particularly exceptional, resulting in a premium for breaking through the glass ceiling in highly religious states.
The study was conducted by scholars at Brock University in Ontario, Canada.