The Finance Brown Bag Seminar is held by the Institute for Finance, Banking and Insurance (WU Vienna) and the Vienna Graduate School of Finance (VGSF). It serves as a presentation platform for PhD students, faculty members, and visitors. An overview of BBS on the website of the Institute for Finance, Banking and Insurance.
Pietro Veronesi, University of Chicago, NBER, and CEPR
Self-image Bias and Lost Talent
We propose an overlapping-generation model wherein researchers belong to two groups, M or F, and established researchers evaluate new researchers. Group imbalance obtains even with group-neutral evaluations and identical productivity distributions. Evaluators’ self-image bias and mild between-group heterogeneity in equally productive research characteristics lead the initially dominant group, say M, to promote scholars similar to them. Promoted F-researchers are few and similar to M-researchers, perpetuating imbalance. Consistently with the data, our mechanism also predicts stronger and widening group imbalance in top institutions; higher quality of accepted F-researchers; clustering of M- and F-researchers across different fields; greater imbalance for seniors than juniors; less credit for F-researchers in co-authored work; and established researchers’ false perception that increasing F-representation reduces quality. Policy-wise, mentorship reduces group imbalance, but increases F-group talent loss. Affirmative action reduces both.