American Economic Journal Applied Economics· 2013Q1
A Female Style in Corporate Leadership? Evidence from Quotas
- 809citations
- Q1SCImago
- 2013year
Short summary
Norway's 2006 gender quota for corporate boards led to fewer workforce reductions and increased relative labor costs, even among boards with experienced members, suggesting a shift in corporate strategy.
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Key points
- Norway's 2006 gender quota reduced workforce reductions by 14% in affected firms compared to controls.
- Affected firms saw increased relative labor costs and employment levels.
- Short-term profits decreased in firms subject to the quota.
- The quota's impact was evident even on boards with experienced members and in firms that previously had no women.
AI-generated from the title and abstract; the full text is not read.
Abstract
This paper studies the impact of gender quotas for corporate board seats on corporate decisions. We examine the introduction of Norway's 2006 quota, comparing affected firms to other Nordic companies, public and private, that are unaffected by the rule. We find that affected firms undertake fewer workforce reductions than comparison firms, increasing relative labor costs and employment levels and reducing short-term profits. The effects are strongest among firms without female board members beforehand and are present even for boards with older and more experienced members afterward. The boards appear to be affecting corporate strategy in part by selecting like-minded executives. (JEL G34, J16, J78, M12, M51)
The authors' abstract, as published at the source. American Economic Journal Applied Economics, 2013 · DOI ↗
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Field: Gender Studies
Gender StudiesSocial Sciences