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Gender discrimination and firm survival: a multilevel approach for EU textile companies

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  • Giorgia Giovannetti

    (Università di Firenze, and European University Institute, San Domenico di Fiesole)

  • Margherita Velucchi

    (Università Europea di Roma)

Abstract

Recent economic literature highlighting the influence of gender discrimination on firm performance suggests that promoting gender diversity is key for boosting a company’s efficiency. This paper analyses the channels through which gender discrimination affects a specific performance indicator: the probability of a firm’s survival. The available evidence is controversial. We argue that a complex set of information at various levels (firm, sector, country, time, etc.) is required to correctly address these issues, i.e., that the data are likely to have a hierachical structure. Against this background, we generalize the standard business demography approach and propose the application of a non-linear, multilevel Cox model. For the empirical application, we focus on the survival probability of European firms in the textile and garment sector, which is characterized by a high percentage of women employees, a wide gender wage gap, and high discrimination. In line with standard business demography studies, we show that size and internationalization modes positively affect firms’ survival probability, while gender-related variables have a significant and negative impact.

Suggested Citation

  • Giorgia Giovannetti & Margherita Velucchi, 2022. "Gender discrimination and firm survival: a multilevel approach for EU textile companies," SN Business & Economics, Springer, vol. 2(9), pages 1-19, September.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:9:d:10.1007_s43546-022-00315-1
    DOI: 10.1007/s43546-022-00315-1
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