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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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    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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