INSIDER TRADING: THE LAW, THE THEORY, THE EVIDENCE

This paper reviews the arguments concerning the role and effects of insider trading. In reviewing the law of insider trading, we concentrate on the main elements of the regulatory framework and court interpretations. We discuss economic issues involved in the debate over the benefits and costs of insider trading. Finally, we discuss evidence illustrating that legal market research can explain much of the runup in a target firm's stock price before a tender offer is formally announced.     

Gender Differences in Promotions and Wages

Results using an original data set indicate women receive more promotions than men. The frequency of promotions is linked to whether the woman had previously quit a job because of her husband's job move. Promotions significantly increase wages for men but not for women. These findings are consistent with the hypothesis that joint job search constrains women to starting jobs at lower levels, providing more scope for promotions.