The relationship of sex‐based wage inequality to level in the hierarchy is investigated for 2,631 employees of a large financial services organization. As hypothesized, men earned more than women overall, and the wage gap between men and women was greater at higher levels in the hierarchy than at lower levels in the hierarchy. The effects of performance ratings on salary also differed by level. At higher levels, the impact of each increase in performance rating was greater for men than women, whereas at lower levels the impact was similar between men and women.
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Auster et al. (1988) studied this question.
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