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

Author

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  • Flabbi, Luca
  • Macis, Mario
  • Moro, Andrea
  • Schivardi, Fabiano

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%.

Suggested Citation

  • Flabbi, Luca & Macis, Mario & Moro, Andrea & Schivardi, Fabiano, 2014. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," CEPR Discussion Papers 10228, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10228
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    More about this item

    Keywords

    executives’ gender; firm performance; gender gap; glass ceiling; statistical discrimination;

    JEL classification:

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

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