Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238241 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
Working Papers in Economics and Statistics No. 2020-17
Publisher: 
University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon), Innsbruck
Abstract: 
We consider the labour market for financial advisers in the US using a matched employer-employee data set over the period 2008-2018, in order to examine gender gaps and racial disparities in labour market penalties for financial misconduct. We first show that the measurement of labour market penalties for financial misconduct plays a central role and the interdependence across misconduct-categories (e.g. customer disputes, regulatory actions, terminations) is gender- and racespecific. Accounting for this, we find that there are little gender gaps in job separation following misconduct and in the incidence of employer-initiated terminations conditional on misconduct-related events. In contrast, we find that racial minorities are at least 20% more likely to leave a firm following customer disputes or regulatory actions compared to their majority counterparts, and also that the racial minorities are 25% more likely to receive terminations. This remains true even after controlling for their education.
Subjects: 
Financial Advisers
Misconduct
Gender Gap
Racial Inequality
Discrimination
JEL: 
G24
J44
J71
L22
Document Type: 
Working Paper

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