Do Relative Disadvantages in College Hinder Female Leadership?

Abstract

The underrepresentation of women in leadership roles has motivated the creation of mentoring programs and microenvironments in universities. Still, evidence on the causal effect of learning environments on managerial careers is limited. By applying a rigorous quasi-experimental method, we estimate the effect of class composition in college on women's job promotion nearly ten years after they enter it. Our data combine administrative records from a flagship university in Brazil and employment register. In most programs, this university splits first-year students into two groups based on admission scores. In a regression discontinuity design, we compare the last student who joins the high-score group (the "first class") and the first student left out, who joins the "second class." Results show that the first-class student faces higher relative disadvantage early in the classroom and is less likely to attain a management position right after graduation. We provide suggestive evidence that the low rank in the first class outweighs the benefits of having better peers. While the effect is persistent for women, low-rank men tend to close the managerial gap with their counterparts in the long-run. This gender difference is not explained by professional experience, maternity, or lack of grit. Our findings are consistent with the behavioral evidence that relative ranks affect students' self-concept and reactions to momentary setbacks vary by gender.