Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238244 
Year of Publication: 
2020
Series/Report no.: 
Working Papers in Economics and Statistics No. 2020-20
Publisher: 
University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon), Innsbruck
Abstract: 
We analyze the impact of records of denied and withdrawn customer complaints on job separation in a dataset based on FINRA's Broker-Check database with more than 3 mio. financial advisers. Compared to misconduct that actually leads to a conviction of the adviser, denied and withdrawn complaints are more likely to be repetitive (an adviser with a record is six times more likely to have another incidence of the same kind than the average adviser). This is in-line with the observation that advisers with a record are only slightly (~ 5%) more likely to loose their job. In contrast, an adviser with a record is 42 times more likely to be re-employed compared to advisers without a record. Moreover, reemployment probabilities display a gender-gap but not a gender-punishment gap: There is a 47% smaller reemployment probability for female compared to male employees but this gender-gap is insensitive to the existence of a record of a customer dispute.
Subjects: 
Financial advice
misconduct
job-mobility
gender-gap
discrimination
credence goods
JEL: 
G34
J44
J71
M51
Document Type: 
Working Paper

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