Gender differences in the effect of employee-manager friendships on salary dynamics in CPA firms
Yossef Tobol,
Ronen Bar-El,
Yuval Arbel,
Ofer H. Azar
Affiliations
Yossef Tobol
Department of Business Administration, Jerusalem College of Technology, 21 Havaad Haleumi, P.O.B. 16031, Jerusalem, 9116001, Israel; IZA, Bonn, Germany; Corresponding author.
Ronen Bar-El
Department of Economics and Management, The Open University of Israel, 1 University Road, POB 808, Raanana, 4310701, Israel
Yuval Arbel
Sir Harry Salomon School of Economics and Management, Western Galilee College, Derech Hamichlala, PO. Box 2125, Acre, 2412101, Israel
Ofer H. Azar
Department of Business Administration, Ben-Gurion University of the Negev, POB 653, Beer Sheva, 8410501, Israel; Laboratory of Economic Behavior of the Center of Psycho-Economic Research, Povolzhsky Institute of Administration Named After P.A. Stolypin – Branch of RANEPA, Saratov, Russia
We study the effect of employee-manager relations on salary increases. We use data obtained from a longitudinal survey, carried out among auditing team members in leading Israeli CPA firms (which are subsidiaries of American firms). Our main findings suggest that the degree of friendship with the team manager is positively correlated with the rate of the salary increase, particularly among female workers whose team manager is also a female. We also find that upon being hired to the job, male workers gain a higher return to experience compared with female workers.
