Gender Discrimination as a Consequence of Team Failure

Although women are hired at similar rates as men in the mutual fund industry, the fraction of female fund managers declined by 30% between 1999 and 2015. We connect this startling fact to the ubiquity of team management in the industry. We show that following fund closures, female team managers are more likely to exit the profession than male team managers. This gender gap in exit is most prominent among new hires. Gender gaps in experience or skill do not drive this result. Our results suggest that the absence of individual performance signals in teams leads to discrimination against women