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

Listed author(s):
  • Flabbi, Luca

    ()

    (University of North Carolina, Chapel Hill)

  • Macis, Mario

    ()

    (Johns Hopkins University)

  • Moro, Andrea

    ()

    (Vanderbilt University)

  • Schivardi, Fabiano

    ()

    (Bocconi University)

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%.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8602.

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Length: 42 pages
Date of creation: Oct 2014
Handle: RePEc:iza:izadps:dp8602
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