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Gender Gaps in Performance: Evidence from Young Lawyers

Azmat, Ghazala and Ferrer, Rosa (2015) Gender Gaps in Performance: Evidence from Young Lawyers. CEP Discussion Papers (CEPDP1136). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper documents and studies the gender gap in performance among associate lawyers in the United States. Unlike other high-skilled professions, the legal profession assesses performance using transparent measures that are widely used and comparable across firms: the number of hours billed to clients and the amount of new client revenue generated. We find clear evidence of a gender gap in annual performance with respect to both measures. Male lawyers bill ten percent more hours and bring in more than twice the new client revenue than do female lawyers. We demonstrate that the differential impact across genders in the presence of young children and differences in aspirations to become a law firm partner account for a large share of the difference in performance. We also show that accounting for performance has important consequences for gender gaps in lawyers’ earnings and subsequent promotion. Whereas individual and firm characteristics explain up to 50 percent of the earnings gap, the inclusion of performance measures explains a substantial share of the remainder. Performance measures also explain a sizeable share of the gender gap in promotion.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: ©2015 The Author(s)
Divisions: LSE
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs, seniority issues)
J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender; Non-labor Discrimination
K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J44 - Professional Labor Markets and Occupations
Date Deposited: 21 Feb 2024 14:36
Last Modified: 21 Feb 2024 14:36
URI: http://eprints.lse.ac.uk/id/eprint/121910

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