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(Gender) Tone at the top: the effects of gender board diversity on gender wage inequality in Europe

Author

Listed:
  • Bram Timmermans

    (Norges Handelshøyskole (NHH))

  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institute of Labor Economics (IZA))

  • Lucas van der Velde

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw)

Abstract

We address the gender wage gap in Europe, focusing on the impact of female representation in executive and non-executive boards. We use a novel dataset to identify gender board diversity across European firms, which covers a comprehensive sample of private firms in addition to publicly listed ones. Our study spans three waves of the Structure of Earnings Survey, covering 26 countries and multiple industries. Despite low prevalence of female representation and the complex nature of gender wage inequality, our findings reveal a robust causal link: increased gender diversity significantly decreases the adjusted gender wage gap. We also demonstrate that to meaningfully impact gender wage gaps, the presence of a single female representative in leadership is insufficient.

Suggested Citation

  • Bram Timmermans & Joanna Tyrowicz & Lucas van der Velde, 2023. "(Gender) Tone at the top: the effects of gender board diversity on gender wage inequality in Europe," GRAPE Working Papers 89, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:89
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    File URL: https://grape.org.pl/WP/89_Timmermans_website.pdf
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    More about this item

    Keywords

    gender inequality; gender wage gaps; board composition; corporate governance; women representation;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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