Can Female Leaders Mitigate the Negative Effects of Racial Diversity? National Leaders and Structural Shifts

Posted: 15 Sep 2017 Last revised: 20 Aug 2024

See all articles by Susan Perkins

Susan Perkins

New York University (NYU) - Department of Management and Organizational Behavior

Jaee Cho

Columbia University - Columbia Business School

Katherine Phillips

Columbia University - Columbia Business School, Management

Negin Toosi

Technion-Israel Institute of Technology - The William Davidson Faculty of Industrial Engineering & Management

Date Written: February 1, 2020

Abstract

Racial/ethnic diversity within groups, organizations, and countries can have negative externalities if left unmitigated. Inequality and exclusion, downsides of the diversity within societies, have been shown to hinder overall productivity. This study posits and finds that the presence of a female national leader mitigates such effects. Using a mixed-methods approach, we analyzed over 5,800 leader-year observations in 126 countries from 1950 – 2009 and found that having female leaders in highly ethnically diverse countries resulted in positive economic growth. We further analyzed survey results from over 245,000 respondents in 83 countries and found that female leaders in highly diverse countries are associated with greater individual-level participation such as self-expression and empowerment, especially among minority groups and women, and greater tolerance for diversity especially among majority group members. The empowerment and tolerance incentivized by female leaders is associated with increased economic performance in diverse countries. Implications for the changing gender composition of leadership throughout society are discussed.

Keywords: Female leaders, racial/ ethnic diversity, economic growth, tolerance for diversity, empowerment

Suggested Citation

Perkins, Susan and Cho, Jaee and Phillips, Katherine and Toosi, Negin, Can Female Leaders Mitigate the Negative Effects of Racial Diversity? National Leaders and Structural Shifts (February 1, 2020). Available at SSRN: https://ssrn.com/abstract=2596978 or http://dx.doi.org/10.2139/ssrn.2596978

Susan Perkins (Contact Author)

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

Jaee Cho

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

Katherine Phillips

Columbia University - Columbia Business School, Management ( email )

3022 Broadway
New York, NY 10027
United States

Negin Toosi

Technion-Israel Institute of Technology - The William Davidson Faculty of Industrial Engineering & Management ( email )

Haifa 32000
Israel

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