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Do Female Executives Make a Difference? The Impact of Female Leadreship on Gender Gaps and Firm Performance

Author

Listed:
  • Luca Flabbi
  • Mario Macis
  • Andrea Moro
  • Fabiano Schivardi

Abstract

We investigate the effects of female executives on gender-specific wage distributions and firm performance. Female leadership has a positive impact at the top of the female wage distribution and negative at the bottom. The impact of female leadership on firm performance increases with the share of female workers. We account for the endogeneity induced by non-random executives’ gender by including firm fixed-effects, by generating controls from a two-way fixed effects regression, and by using instruments based on regional trends. The findings are consistent with a model of statistical discrimination where female executives are better at interpreting signals of productivity from female workers. This suggests substantial costs of women under-representation among executives.

Suggested Citation

  • Luca Flabbi & Mario Macis & Andrea Moro & Fabiano Schivardi, 2018. "Do Female Executives Make a Difference? The Impact of Female Leadreship on Gender Gaps and Firm Performance," CHILD Working Papers Series 64 JEL Classification: M5, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
  • Handle: RePEc:cca:wchild:64
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    More about this item

    Keywords

    executives' gender; gender gap; firm performance; glass ceiling; statistical discrimination.;
    All these keywords.

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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