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The Origins of the Gender Gap
Many attempts to narrow the gender gap-ranging from greater disclosure to governance rules-assume that it reflects the personal bias of senior decision makers, in particular CEOs. However, this premise has been difficult to prove; until now. The authors set out to compare two things: the personal backgrounds of CEOs and their allocation of capital budgets to male and female division managers at U.S. conglomerates. The present their findings, which indicate that a CEO's formative years-including factors like whether they attended an all-boys school and whether their mother worked or not-have a significant impact on their later corporate behavior.