A report from the National Bureau of Economic Research
has found that while male and female financial advisers are reprimanded for misconduct, women are 20 percent more likely to lose their jobs as a result of misconduct than men. Further, if fired, they are also 30 percent less likely to find new jobs relative to male advisers.
"Evidence suggests that the observed behavior is not driven by productivity differences across advisers. Rather, we find supporting evidence for taste-based discrimination. For females, a disproportionate share of misconduct complaints is initiated by the firm, instead of customers or regulators," said the study abstract.
Further, it said that the more male executives and owners at a given branch, the more severely female advisers are sanctions for misconduct; they also tend to hire fewer female advisers with past records of misconduct than branches.
This is in spite of the fact that, according to CNN
, the researchers found that men are three times more likely to engage in misconduct and twice as likely to do so on multiple occasions. When men engage in misconduct, it also tends to be 20 percent more costly to the firm than when women do it.