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

TitleDo Female Executives Make a Difference? The Impact of Female Leadership on Gender Gaps and Firm Performance
Publication TypeReport
Year of Publication2014
AuthorsFlabbi, L., Macis, M., Moro, A, and Schivardi, F.
Date Published2014///
InstitutionCornell University, ILR School, Institute for Compensation Studies
CityIthaca, NY
Keywordsexecutives’ gender, firm performance, gender bias, gender discrimination, gender gap, glass ceiling
Abstract

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%.

URLhttp://digitalcommons.ilr.cornell.edu/ics/15/