Description:

Ashley Wong and Francesca Truffa (Northwestern University): “Peer Effects in Labor Market Outcomes: Evidence from MBA Students."

About: Using random assignment of MBA students to sections at a top 10 business school, we explore the role of female peers on the career choices of other females in section. We study whether having more female section peers can influence women to enter high-paid industries and positions. We find that female share has a positive differential effect on the probability to enter the finance industry for female students and that this result is driven by the share of women that work in high wage industries prior to attending the MBA program. Moreover, having a higher share of women in a section leads women to be 7% more likely to be in a management position after 10 years from graduation. The results of this study have important policy implications for universities and educators to address the gender gap in high-paid industries and occupations.