Intra-firm hierarchies and gender gaps

Nicolò Dalvit, Aseem Patel and Joanne Tan

Labour Economics, 2022, vol. 77, issue C

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 (search for similar items in EconPapers)
JEL-codes: G38 J16 J3 L2 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:77:y:2022:i:c:s0927537121000646

DOI: 10.1016/j.labeco.2021.102029

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