“…A nascent literature investigates the role of discrimination by subordinates (Grossman et al, 2016;Ayalew et al, 2018). While hiring discrimination disadvantages firms in a competitive market (Arrow, 1971), discrimination by subordinates can create an equilibrium in which gender discrimination becomes a self-fulfilling prophecy (Loury, 2009): women may become less effective managers precisely because workers perceive them to be less effective, implying that it is rational for firms to promote men over equally or more qualified women.…”