Female Hires and the Success of Start-Up Firms

14 Pages Posted: 1 Dec 2009

See all articles by Andrea Weber

Andrea Weber

Vienna University of Economics and Business; Austrian Institute of Economic Research (WIFO); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Christine Zulehner

University of Vienna - Faculty of Business, Economics, and Statistics

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Abstract

In this paper we investigate the relationship between females among the first hires of start-up companies and business success. Our results show that firms with female first hires have a higher share of female workers at the end of the first year after entry. Further, we find that firms with female first hires are more successful and stay longer in the market. We conclude that our results support the hypothesis that gender-diversity in leading positions is an advantage for start-up firms.

Keywords: firm survival, profitability, female employment, discrimination, market test, matched employer-employee data

JEL Classification: J16, J71, L25

Suggested Citation

Weber, Andrea Michaela and Zulehner, Christine, Female Hires and the Success of Start-Up Firms. IZA Discussion Paper No. 4568. Available at SSRN: https://ssrn.com/abstract=1515115

Andrea Michaela Weber (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, 1020
Austria

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Christine Zulehner

University of Vienna - Faculty of Business, Economics, and Statistics

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