Risk Taking And Gender In Hierarchies
In a labor market hierarchy, promotions are affected by the noisiness of information about the candidates. The author studies the hypothesis that males are more risk taking than females, and its implications for rates of promotion and abilities of survivors. The author defines promotion hierarchies with and without memory, where memory means that promotion depends on the entire history of success. In both types of hierarchies, the surviving risk takers will have lower average ability whenever they have a higher survival rate. Further, even if more risk takers than non risk takers are promoted in the beginning of the hierarchy that will be reversed over time.