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The Effect of Female Leadership on Establishment and Employee Outcomes: Evidence from Linked Employer-Employee Data

Author

Listed:
  • Gagliarducci, Stefano

    () (University of Rome Tor Vergata)

  • Paserman, M. Daniele

    () (Boston University)

Abstract

In this paper we use a large linked employer-employee data set on German establishments between 1993 and 2012 to investigate how the gender composition of the top layer of management affects a variety of establishment and worker outcomes. We use two different measures to identify the gender composition of the top layer based on direct survey data: the fraction of women among top managers, and the fraction of women among working proprietors. We document the following facts: a) There is a strong negative association between the fraction of women in the top layer of management and several establishment outcomes, among them business volume, investment, total wage bill per worker, total employment, and turnover; b) Establishments with a high fraction of women in the top layer of management are more likely to implement female-friendly policies, such as providing childcare facilities or promoting and mentoring female junior staff; c) The fraction of women in the top layer of management is also negatively associated with employment and wages, both male and female, full-time and part-time. However, all of these associations vanish when we include establishment fixed effects and establishment-specific time trends. This reveals a substantial sorting of female managers across establishments: small and less productive establishments that invest less, pay their employees lower wages, but are more female-friendly are more likely to be led by women.

Suggested Citation

  • Gagliarducci, Stefano & Paserman, M. Daniele, 2014. "The Effect of Female Leadership on Establishment and Employee Outcomes: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 8647, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8647
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    References listed on IDEAS

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    1. Marianne Bertrand & Sandra E. Black & Sissel Jensen & Adriana Lleras-Muney, 2014. "Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labor Market Outcomes in Norway," NBER Working Papers 20256, National Bureau of Economic Research, Inc.
    2. Flabbi, Luca & Macis, Mario & Moro, Andrea & Schivardi, Fabiano, 2014. "Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance," IZA Discussion Papers 8602, Institute for the Study of Labor (IZA).
    3. Kenneth R. Ahern & Amy K. Dittmar, 2012. "The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Board Representation," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 137-197.
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    Cited by:

    1. Chiara Pronzato & Paola Profeta & Valeria Ferraro & Giulia Ferrari, 2016. "Gender Quotas: Challenging the Boards, Performance, and the Stock Market," Working Papers id:11411, eSocialSciences.

    More about this item

    Keywords

    gender; firm performance; employer-employee data;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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