|Title||Do Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance|
|Year of Publication||2014|
|Authors||Flabbi, L., Macis, M., Moro, A, and Schivardi, F.|
|Institution||Cornell University, ILR School, Institute for Compensation Studies|
|Keywords||executives’ gender, firm performance, gender bias, gender discrimination, gender gap, glass ceiling|
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 underrepresentation 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%.