Walking on Wall Street in Heels: A Quantitative and Sociological Approach to Gender and Recruitment in Finance

Abstract

It is well known that social networks serve a significant role in the job hunting process. However, social networks could play out differently in finance, perhaps the most male-dominated industry with a high barrier to entry for minorities. This study seeks to examine the role of gender in the flow of social capital during the recruitment process in finance, specifically with regards to how gender modulates the strength of the relationships between candidates and current employees. Pilot interviews were conducted with ten women and four men; interview results were used as basis of our survey, which was completed by 250 respondents. Prior research has shown that tie strength has a linear relationship with sociological factors, such as duration of the relationship or frequency of contact. Thus, we used the multiple linear regression model in this study to measure and predict tie strength based on the candidate’s gender. Using the predicted tie strength, we analyzed the survey data to assess gender disparities in tie strength, advantages and disadvantages per gender, and female oriented diversity programs. Our results showed that 1) there was no difference in tie strength between men and women, 2) women thought their gender was beneficial during recruiting more than men did and crossed gender more, and 3) female oriented diversity programs offered a structural advantage. These imply that women benefit from social networks during job search more than we had expected, although other factors may exist, including one’s socioeconomic status, undergraduate education prestige, and ethnicity.