Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance
42 Pages Posted: 8 Nov 2014
There are 2 versions of this paper
Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance
Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance
Abstract
We analyze a matched employer-employee panel data set and find that female leadership has a positive effect on female wages at the top of the distribution, and a negative one at the bottom. Moreover, performance in firms with female leadership increases with the share of female workers. This evidence is consistent with a model where female executives are better equipped at interpreting signals of productivity from female workers. This suggests substantial costs of under-representation of women at the top: for example, if women became CEOs of firms with at least 20% female employment, sales per worker would increase 6.7%.
Keywords: executives' gender, gender gap, firm performance, glass ceiling, statistical discrimination
JEL Classification: M5, M12, J7, J16
Suggested Citation: Suggested Citation