"The corporate world is a boys' club, and it'll always be a boys' club," said a banker who struck up a conversation with me a few years ago in a coffee shop near the university where I once taught. "Male managers are always going to hire men over women, because they feel more comfortable around men."
"Aren't there some managers who just hire whoever's best for the job?," I asked.
"Yeah, there are some," he said. "I don't know what's going on with those guys."
Gary Becker might have had an idea of what was going on. For decades in the mid-20th century, the future Nobel-winning economist wrote about the economics of discrimination. His theory was, in a nutshell, that the people who make hiring decisions at companies are bigoted -- they'd rather work with people of their own race or gender. Essentially, this is the same explanation that the banker gave me in the coffee shop. According to Becker, bigoted employers will pay lower salaries to the people they don't like, resulting in gender and racial wage gaps.