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Women in Top Corporate Positions and the Labor Share: Evidence from European Firms

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  • Sebastian

    (Group for Research in Applied Economics (GRAPE))

Abstract

The paper studies the representation of women in top corporate positions and the workers’ share of firms’ income. Using a large panel of European firms and identification from a shift–share instrument, the author estimates the effect of gender board diversity on the labor share. In the preferred specification, a 10 percentage point increase in gender board diversity is associated with a 0.75 percentage point rise in the labor share. The effect is stronger in services, in smaller firms, and among firms with persistently low productivity. A counterfactual analysis demonstrates a high semi-elasticity of employment as the driving mechanism behind these findings.

Suggested Citation

  • Sebastian, 2025. "Women in Top Corporate Positions and the Labor Share: Evidence from European Firms," GRAPE Working Papers 109, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:109
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    File URL: https://grape.org.pl/WP/109_Zalas_website.pdf
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    References listed on IDEAS

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    1. Geoffrey Tate & Liu Yang, 2015. "The Bright Side of Corporate Diversification: Evidence from Internal Labor Markets," The Review of Financial Studies, Society for Financial Studies, vol. 28(8), pages 2203-2249.
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    14. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2022. "Are Women Doing It for Themselves? Female Managers and the Gender Wage Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1329-1355, December.
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    More about this item

    Keywords

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    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other

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