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Research ArticleArticles
Open Access

Gender Differences within the Firm

Evidence from Two Million Business Travelers

View ORCID ProfileJavier D. Donna and View ORCID ProfileGregory F. Veramendi
Journal of Human Resources, November 2022, 57 (6) 1915-1945; DOI: https://doi.org/10.3368/jhr.58.2.0818-9664R2
Javier D. Donna
Javier D. Donna is Assistant Professor of Economics at the University of Florida and Fellow of the Rimini Centre for Economic Analysis ().
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  • For correspondence: jdonna{at}ufl.edu
Gregory F. Veramendi
Gregory F. Veramendi is Assistant Professor of Economics at University of Munich (LMU) ().
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  • For correspondence: gregory.veramendi{at}econ.lmu.de
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  • Figure 1
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    Figure 1 Distribution of Paid Fare by Gender

    Notes: The figure displays the kernel density estimate (Panel A) and empirical cumulative distribution (Panel B) of the paid fare in U.S. dollars by gender. See Online Appendix Section I for details on the kernel density estimation.

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    Table 1

    Summary Statistics of Business Travel Data: Dependent Variables

    StatisticObs.MeanMedianSDMin.Max.
    Paid fare (in U.S. dollars)7,426,390791.24502.971021.0078.587,344.00
      Female1,848,569713.16466.79930.4878.587,344.00
      Male5,577,821817.12515.901047.9878.587,344.00
    Days booked in advance7,426,39018.6513.0021.050364.00
      Female1,848,56920.7014.0021.620364.00
      Male5,577,82117.9712.0020.810364.00
    Share booking two weeks or more in advance7,426,3900.463500.498701
      Female1,848,5690.529110.499201
      Male5,577,8210.441700.496501
    • Notes: Each observation represents one round-trip flight. The table displays the summary statistics of the dependent variables used in, for example, Table 4. See Appendix 1 for the definitions of the variables.

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    Table 2

    Summary Statistics of Business Travel Data: Independent Variables

    Panel A: Business Travel Data
    VariableCategoriesObservationsFrequency
    TotalFemaleTotal
    Female05,577,82100.7511
    11,848,5691,848,5690.2489
    Direct flight0782,045171,6600.1053
    16,644,3451,676,9090.8947
    Age≤24 years old51,94320,6660.0700
      (dummy variables)25–341,179,011395,1860.1588
    35–442,388,891618,1590.3217
    45–542,483,155557,0190.3344
    55–641,193,808235,5410.1608
    ≥65129,58221,9980.0174
    Length of stay≤1 day993,032246,3000.1337
      (dummy variables)1–21,611,981399,4150.2171
    2–31,451,544376,0200.1955
    3–41,209,934312,9270.1629
    ≥52,159,899513,9070.2908
    Number of trips per traveler≤5 trips per year2,987,066910,4090.4022
      (dummy variables)6–101,657,749402,5030.2232
    11–151,018,632217,7200.1372
    ≥161,762,943317,9370.2374
    Ticket classEconomy Class6,629,5541,687,5190.8927
      (dummy variables)Premium Economy276,51758,7980.0372
    Business Class486,58595,5790.0655
    First Class33,7346,6730.0045
    Flight typeDomestic4,662,5231,266,3260.6278
      (dummy variables)Continental1,909,052416,3300.2571
    Intercontinental854,815165,9130.1151
    Panel B: Economic Preference Data
    Obs.MeanSDMin.Max.
    Patience7,011,259−0.0880.090−0.2880.085
    Risk-taking7,011,259−0.3090.102−0.3950.028
    Altruism7,011,2590.1970.066−0.1610.406
    Positive reciprocity7,011,2590.1010.085−0.2070.270
    Negative reciprocity7,011,259−0.2720.117−0.4670.036
    Trust7,011,2590.2770.154−0.1430.418
    • Notes: Each observation represents one round-trip flight. The table displays, for selected independent variables used in Table 4, the categories, the number of observations, and the frequency by category. The total number of observations per variable in Panel A is 7,426,390, which is the total number of observations in Table 4. The frequencies of the categories per variable sum to 100 percent. See Appendix 1 for the definitions of the variables and fixed effects. Panel B presents summary statistics from the merged preferences data obtained from the Global Preference Survey (GPS) as presented by Falk et al. (2018). For each preference item, the number represents the mean gender difference by country in the original preference. A positive coefficient means that women in that country have higher values in the respective preference. The preferences are in the same unit as the original preference measure from the GPS. See Table 3 for a summary of the survey items for each preference. See Section II.B and Appendix 2 for details about the preference data.

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    Table 3

    Survey Items of the Global Preference Survey

    PreferenceItem DescriptionWeight
    PatienceIntertemporal choice sequence using staircase method0.712
    Self-assessment: Willingness to wait0.288
    Risk-takingLottery choice sequence using staircase method0.473
    Self-assessment: Willingness to take risks in general0.527
    Positive reciprocityGift in exchange for help0.515
    Self-assessment: Willingness to return a favor0.485
    Negative reciprocitySelf-assessment: Willingness to take revenge0.374
    Self-assessment: Willingness to punish unfair behavior towards self0.313
    Self-assessment: Willingness to punish unfair behavior towards others0.313
    AltruismDonation decision0.635
    Self-assessment: Willingness to give to good causes0.365
    TrustSelf-assessment: People have only the best intentions1.000
    • Source: Falk etal. (2018, Table 1). See their Online Appendix AF forthe wording ofthe questions and Online Appendix AI for a discussion of the weights.

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    Table 4

    Femal–Male Business Travel Gaps

    (1)(2)(3)(4)(5)
    Panel A: Paid Fare (USD)
    Female−103.966***−27.656***−20.791***−15.482***−4.460***
    (0.866)(0.284)(0.290)(0.293)(0.285)
    Adjusted R20.0020.8960.9010.9010.907
    Panel B: Days Booked in Advance
    Female2.728***2.693***1.606***1.809***
    (0.018)(0.017)(0.017)(0.017)
    Adjusted R20.0030.1580.2250.228
    Panel C: Booking in Advance Pr(≥2 Weeks)
    Female0.087***0.078***0.051***0.053***
    (4.22e-4)(4.02e-4)(4.06e-4)(4.10e-4)
    Adjusted R20.0060.1280.1880.191
    Trip characteristics (16,405)NoYesYesYesYes
    Employer characteristics (23,668)NoNoYesYesYes
    Employee characteristics (14)NoNoNoYesYes
    Days booked in advance FE (26)NoNoNoNoYes
    Total number of FE016,40540,07340,08740,113
    Number of observations7,426,3907,426,3907,426,3907,426,3907,426,390
    • ↵Notes: Dependent variable is listed in each panel. “Trip characteristics” include the following variables: origin–destination route × ticket class fixed effects (FE), direct flight, length of stay dummy variables, and week fixed effects. “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The number of fixed effects associated with each set of controls is shown inside the parentheses next to each label in the first column. The total number of fixed effects reports the number of fixed effects included in each column/specification. See Appendix 1 for the definitions of the variables and fixed effects. All regressions are OLS regressions. Standard errors are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

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    Table 5

    Gelbach Decomposition of the Female-Male Paid Fare Gap

    SpecificationExplained
    Base
    (1)
    Full
    (2)
    Amount
    (3)
    Percent
    (4)
    Female–male paid fare gap−103.966−4.460−99.50695.7%
    Covariates:
      Trip and employer characteristics (40,073)NoYes−75.51972.6%
      Employee characteristics (14)NoYes−5.9855.76%
      Days booked in advance FE (26)NoYes−18.00317.3%
    • Notes: Dependent variable for the specifications is the paid fare, which is measured in U.S. dollars. The coefficient for the female–male paid fare gap in Columns 1 and 2 correspond, respectively, to the coefficients in Table 4A, Columns 1 and 5. Both specifications use the same 7,426,390 observations and are OLS regressions. Column 3 displays the conditional decomposition of the female–male paid fare gap into three components: trip and employer characteristics, employee characteristics, and days booked in advance fixed effects (FE), following Gelbach (2016). “Trip characteristics” include the following variables: Origin–destination route × ticket class fixed effects, direct flight, length of stay dummy variables, and week fixed effects. “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The number of fixed effects associated with each set of controls is shown inside the parentheses next to each label in the first column. See Appendix 1 for the definitions of the variables and fixed effects. All coefficients in the table have p-values of p < 0.001.

    • View popup
    Table 6

    Female–Male Business Travel Gaps: Female Interactions (Part I)

    Dependent Variable:Paid Fare (USD)Booking in Advance
    DaysPr(≥2 Weeks)
    (1)(2)(3)(4)(5)(6)
    Female ×
      (age ≤ 24)−11.752***1.158***0.035***
    (2.931)(0.169)(0.004)
      (25 ≤ age ≤ 34)−13.420***1.752***0.052***
    (0.640)(0.037)(8.96e-4)
      (35 ≤ age ≤ 44)−14.253***1.883***0.056***
    (0.489)(0.028)(6.84e-4)
      (45 ≤ age ≤ 54)−16.285***1.763***0.051***
    (0.505)(0.029)(7.06e-4)
      (55 ≤ age ≤ 64)−18.888***1.917***0.053***
    (0.757)(0.044)(0.001)
      (age ≥ 65)−26.386***1.209***0.040***
    (2.422)(0.140)(0.003)
    Female ×
      (length of stay ≤ 1 day)−10.596***0.794***0.036***
    (0.763)(0.044)(1.07e-4)
      (1 < length of stay ≤ 2 days)−14.537***1.432***0.055***
    (0.598)(0.034)(8.37e-4)
      (2 < length of stay ≤ 3 days)−16.949***2.054***0.065***
    (0.619)(0.036)(8.67e-4)
      (3 < length of stay ≤ 4 days)−18.395***2.154***0.056***
    (0.677)(0.039)(9.47e-4)
      (length of stay ≥ 5 days)−15.719***2.199***0.049***
    (0.532)(0.030)(7.44e-4)
    Trip characteristics (16,405)YesYesYesYesYesYes
    Employer characteristics (23,668)YesYesYesYesYesYes
    Employee characteristics (14)YesYesYesYesYesYes
    Adjusted R20.9010.9010.2280.2280.1910.191
    • ↵Notes: The table displays female interactions using Specification 4 from Table 4. “Trip characteristics” include the following variables: Origin–destination route × ticket class fixed effects, direct flight, length of stay dummy variables, and week fixed effects. “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The value in parentheses in the initial column, next to the labels, is the number of fixed effects included in each line. See Appendix 1 for the definitions of the variables and fixed effects. All regressions are OLS regressions. Standard errors are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

    • View popup
    Table 7

    Female–Male Paid Fare Gap: Female Interactions (Part II)

    Dependent Variable:Paid Fare (USD)Booking in Advance
    DaysPr(≥2 weeks)
    (1)(2)(3)(4)(5)(6)
    Female ×
      (trips per year ≤ 5)−15.563***2.570***0.064***
    (0.419)(0.024)(5.86e-4)
      (6 ≤ trips per year ≤ 10)−14.089***1.562***0.051***
    (0.596)(0.034)(8.33e-4)
      (11 ≤ trips per year ≤ 15)−16.293***1.105***0.044***
    (0.792)(0.046)(0.001)
      (trips per year≥ 16)−16.391***0.684***0.035***
    (0.653)(0.038)(9.13e-4)
      Africa−7.8121.154***0.026***
    (4.593)(0.265)(0.006)
      Australia2.020−0.574***0.016***
    (1.356)(0.078)(0.002)
      Europe−16.149***2.048***0.051***
    (0.512)(0.030)(7.16e-4)
    Female ×
      Asia9.288***1.771***0.054***
    (1.457)(0.084)(0.002)
      Middle East13.669−0.2060.008
    (9.441)(0.545)(0.013)
      North America−18.935***1.908***0.059***
    (0.397)(0.023)(5.55e-4)
      South America−10.292***1.478***0.039***
    (1.307)(0.075)(0.001)
    Trip characteristics (16,405)YesYesYesYesYesYes
    Employer characteristics (23,668)YesYesYesYesYesYes
    Employee characteristics (14)YesYesYesYesYesYes
    Adjusted R20.9010.9010.2280.2280.1910.191
    • ↵Notes: The table displays female interactions using Specification 4 from Table 4. “Trip characteristics” include the following variables: origin–destination route × ticket class fixed effects, direct flight, length of stay dummy variables, and week fixed effects. “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The value in parentheses in the initial column, next to the labels, is the number of fixed effects included in each line. See Appendix 1 for the definitions of the variables and fixed effects. All regressions are OLS regressions. Standard errors are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

    • View popup
    Table 8

    Female–Male Paid Fare Gap: Female Interactions with Preference Data

    Dependent Variable: Paid Fare
    (1)(2)(3)(4)(5)(6)(7)
    Female−15.781***
    (1.636)
    −14.987***
    (2.834)
    −9.688
    (5.989)
    −9.125*
    (4.057)
    −11.215***
    (2.039)
    −6.696
    (3.874)
    −8.294***
    (1.756)
    Female ×
      Patience9.965
    (20.106)
      Risk-taking19.155
    (17.856)
      Altruism−33.451
    (23.608)
      Positive reciprocity−40.989**
    (11.976)
      Negative reciprocity32.441*
    (12.500)
      Trust−25.619***
    (4.329)
    Trip characteristics (16,122)YesYesYesYesYesYesYes
    Employer characteristics (20,825)YesYesYesYesYesYesYes
    Employee characteristics (14)YesYesYesYesYesYesYes
    Total number of FE included36,96136,96136,96136,96136,96136,96136,961
    Adjusted R20.8990.8990.8990.8990.8990.8990.899
    Number of observations7,011,2597,011,2597,011,2597,011,2597,011,2597,011,2597,011,259
    • ↵Notes: Dependent variable is the paid fare, which is measured in U.S. dollars. The table displays female interactions using Specification 4 from Table 4A. “Trip characteristics” include the following variables: origin–destination route × ticket class fixed effects (FE), direct flight, length of stay dummy variables, and week fixed effects. “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The value in parentheses in the initial column, next to the labels, is the number of fixed effects included in each line. The total number of fixed effects reports the number of fixed effects included in each column/specification. See Appendix 1 for the definitions of the variables and fixed effects. See Table 3 for a summary of the survey items for each preference. All regressions are OLS regressions. Robust standard errors clustered at the country level are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

    • View popup
    Table 9

    Female–Male Days Booked in Advance Gap: Female Interactions with Preference Data

    Dependent Variable: Days Booked in Advance
    (1)(2)(3)(4)(5)(6)(7)
    Female1.774***
    (0.111)
    1.749***
    (0.131)
    1.583***
    (0.372)
    1.874***
    (0.403)
    1.650***
    (0.236)
    1.655***
    (0.210)
    1.519***
    (0.223)
    Female ×
      Patience−0.315
    (1.071)
      Risk-taking−0.600
    (1.061)
      Altruism−0.502
    (2.437)
      Positive reciprocity1.114
    (1.234)
      Negative reciprocity−0.427
    (0.811)
      Trust0.873
    (0.438)
    Trip characteristics (16,122)YesYesYesYesYesYesYes
    Employer characteristics (20,825)YesYesYesYesYesYesYes
    Employee characteristics (14)YesYesYesYesYesYesYes
    Total number of FE included36,96136,96136,96136,96136,96136,96136,961
    Adjusted R20.2240.2240.2240.2240.2240.2240.2240.224
    Number of observations7,011,2597,011,2597,011,2597,011,2597,011,2597,011,2597,011,259
    • ↵Notes: Dependent variable is the days booked in advance. The table displays female interactions using Specification 4 from Table 4B. “Trip characteristics” include the following variables: origin–destination route × ticket class fixed effects, direct flight, length of stay dummy variables, and week fixed effects (FE). “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The value in parentheses in the initial column, next to the labels, is the number of fixed effects included in each line. The total number of fixed effects reports the number of fixed effects included in each column/specification. See Appendix 1 for the definitions of the variables and fixed effects. See Table 3 for a summary of the survey items for each preference. All regressions are OLS regressions. Robust standard errors clustered at the country level are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

    • View popup
    Table 10

    Female–Male Probability Gap for Booking Two Weeks or More in Advance: Female Interactions with Preference Data

    Linear Probability Model for Booking Two Weeks or More in Advance
    (1)(2)(3)(4)(5)(6)(7)
    Female0.053***
    (0.003)
    0.055***
    (0.004)
    0.038***
    (0.009)
    0.044***
    (0.007)
    0.045***
    (0.004)
    0.041***
    (0.004)
    0.038***
    (0.004)
    Female ×
      Patience0.028
    (0.028)
      Risk-taking−0.047
    (0.027)
      Altruism0.042
    (0.044)
      Positive reciprocity0.072**
    (0.021)
      Negative reciprocity−0.040*
    (0.017)
      Trust0.049***
    (0.007)
    Trip characteristics (16,122)YesYesYesYesYesYesYes
    Employer characteristics (20,825)YesYesYesYesYesYesYes
    Employee characteristics (14)YesYesYesYesYesYesYes
    Total number of FE included36,96136,96136,96136,96136,96136,96136,961
    Adjusted R20.1890.1890.1890.1890.1890.1890.189
    Number of observations7,011,2597,011,2597,011,2597,011,2597,011,2597,011,2597,011,259
    • ↵Notes: The table displays the estimates of a linear probability model. The dependent variable is a dummy variable equal to one if the traveler booked the flight two weeks or more in advance (that is if the trip was booked 14 days or more prior to the day of departure), and zero otherwise. The table displays female interactions using Specification 4 from Table 4C. “Trip characteristics” include the following variables: origin–destination route × ticket class fixed effects, direct flight, length of stay dummy variables, and week fixed effects (FE). “Employer characteristics” include the following variables: division × firm fixed effects and country fixed effects. “Employee characteristics” include the following variables: age dummy variables, number of trips per traveler dummy variables, and employee type fixed effects. The value in parentheses in the initial column, next to the labels, is the number of fixed effects included in each line. The total number of fixed effects reports the number of fixed effects included in each column/specification. See Appendix 1 for the definitions of the variables and fixed effects. See Table 3 for a summary of the survey items for each preference. All regressions are OLS regressions. Robust standard errors clustered at the country level are in parentheses. Significance: *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001.

    • View popup
    Table A1

    Summary Statistics of Preference Data

    Panel A: All Observations
    Obs.MeanSDMin.Max.
    Patience7,011,259−0.0880.090−0.2880.085
    Risk-taking7,011,259−0.3090.102−0.3950.028
    Altruism7,011,2590.1970.066−0.1610.406
    Positive reciprocity7,011,2590.1010.085−0.2070.270
    Negative reciprocity7,011,259−0.2720.117−0.4670.036
    Trust7,011,2590.2770.154−0.1430.418
    Panel B: By Country
    CountriesMeanSDMin.Max.
    Patience46−0.0780.098−0.2880.085
    Risk-taking46−0.2030.105−0.3950.028
    Altruism460.1390.124−0.1610.406
    Positive reciprocity460.0580.098−0.2070.270
    Negative reciprocity46−0.1610.110−0.4670.036
    Trust460.0950.128−0.1430.418
    • Notes: Summary statistics from the merged preferences data obtained from the Global Preference Survey (GPS) as presented by Falk et al. (2018). For each preference item, the number represents the mean gender difference by country in the original preference. A positive coefficient means that women in that country have higher values in their respective preference. The preferences are in the same unit as the original preference measure from the GPS. See Table 3 for a summary of the survey items for each preference. See Section II.B and Appendix 2 for details about the preference data.

    • View popup
    Table A2

    Pairwise Correlation Coefficients between Gender Differences in Preferences

    PatienceRisk-TakingAltruismPositive
    Reciprocity
    Negative
    Reciprocity
    Trust
    Patience1.0000
    Risk-taking0.51521.0000
    Altruism−0.5340−0.88881.0000
    Positive−0.1570−0.82470.83231.0000
      reciprocity
    Negative0.55630.9629−0.9018−0.82091.0000
      reciprocity
    Trust−0.3343−0.92330.90120.9092−0.93201.0000
    • Notes: Pairwise correlation coefficients from the merged preferences data obtained from the Global Preference Survey (GPS) as presented by Falk et al. (2018). See Table 3 for a summary of the survey items for each preference. See Section II.B and Appendix 2 for details about the preference data.

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Journal of Human Resources: 57 (6)
Journal of Human Resources
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1 Nov 2022
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Gender Differences within the Firm
Javier D. Donna, Gregory F. Veramendi
Journal of Human Resources Nov 2022, 57 (6) 1915-1945; DOI: 10.3368/jhr.58.2.0818-9664R2

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Gender Differences within the Firm
Javier D. Donna, Gregory F. Veramendi
Journal of Human Resources Nov 2022, 57 (6) 1915-1945; DOI: 10.3368/jhr.58.2.0818-9664R2
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    • ABSTRACT
    • I. Introduction
    • II. Data Description
    • III. Empirical Results
    • IV. Potential Mechanisms
    • V. Robustness and Additional Results
    • VI. Concluding Remarks
    • Appendix 1
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