Handicaps in Job Assignment: Insiders,Outsiders and Gender

In this study, I use personnel data from a large German company in order to analyze handicaps in job assignment. First, I compare the productivity-relevant characteristics (university degree and work experience) and wages between insiders and outsiders as well as between men and women, who have been assigned to jobs at the same hierarchical level. Second, I estimate promotion probabilities and duration models for the time until the next promotion. The overall findings indicate a significant handicap in job assignment for outsiders with respect to schooling and little evidence that women are handicapped. While gender differences in wages within job levels and promotion probabilities are small, women have, on average, significantly less work experience than men at the same job level.