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Gender board diversity spillovers and the public eye

Author

Listed:
  • Hubert Drazkowski

    (Group for Research in Applied Economics (GRAPE))

  • Bram Timmermans

    (Norges Handelshøyskole (NHH))

  • Joanna Tyrowicz

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

Abstract

A range of policy recommendations mandating gender board quotas is based on the idea that "women help women". We analyze potential gender diversity spillovers from supervisory to top managerial positions over three decades in Europe. Contrary to previous studies which worked with stock listed firms or were region locked, we use a large data base of circa 2 000 000 firms. We find evidence that women do not help women in corporate Europe, unless the firm is stock listed. Only within public firms, going from no woman to at least one woman on supervisory position is associated with a 10-15% higher probability of appointing at least one woman to the executive position. This pattern aligns with signaling, stakeholder and institutional theories, suggesting that external visibility influences corporate gender diversity practices. The study implies that diversity policies, while impactful in public firms, might have limited effectiveness in promoting gender diversity in corporate Europe.

Suggested Citation

  • Hubert Drazkowski & Bram Timmermans & Joanna Tyrowicz, 2023. "Gender board diversity spillovers and the public eye," GRAPE Working Papers 90, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:90
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    File URL: https://grape.org.pl/WP/90_Drazkowski_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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