Gender Differences in Career Success of Academics in an Automotive Group

Women are underrepresented and paid less in managerial positions. This is particularly true in Germany’s key industry – the automotive industry. We test if unequal investments into human capital (e.g. STEM education) or gender discrimination explain the difference. To control for selection and endogeneity, we focus on career trajectories of over 2000 employees and cross-validate the findings with qualitative interviews. Our results reveal gender-specific differences in human capital. But in addition, women are also more exposed to discrimination than their male counterparts. Employees identify the organizational culture as a major reason why women lower their ambitions and why their chances to reach managerial positions dissolve after a few years. We conclude that companies need to accept less standardized career trajectories to achieve diversity in leadership. This implies also a shift from a presence culture towards a performance culture.