Publication Type

Journal Article

Version

acceptedVersion

Publication Date

8-2022

Abstract

We study how changes in female representation at the top of a firm’s organisation affect gender-specific outcomes across hierarchies within firms. We start by developing a theoretical model of a hierarchical firm, where gender representation in top organisational layers can affect gender-specific hiring and promotion probabilities at lower layers. We then exploit a recent French reform that imposed gender representation quotas in the boards of directors and test the model’s predictions in the data. Our empirical results show that the reform was successful in reducing gender wage and representation gaps at the upper layers of the firm, but not at lower firm layers. A Panel VAR analysis confirms that the trickle-down effects of this policy were limited and suggests that quotas targeting middle management, rather than corporate boards, may have a more widespread effect across the firm.

Keywords

Gender Gap, Firm Organisation, Gender Quota, Trickle-Down Effect

Discipline

Behavioral Economics | Industrial Organization | Organization Development

Research Areas

Applied Microeconomics

Publication

Labour Economics

Volume

77

First Page

1

Last Page

16

ISSN

0927-5371

Identifier

10.1016/j.labeco.2021.102029

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.labeco.2021.102029

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