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Intra-firm hierarchies and gender gaps

Patel, Aseem and Tan, Joanne and Dalvit, Nicolò (2022) 'Intra-firm hierarchies and gender gaps.' Labour Economics, 77. p. 102029. ISSN 0927-5371

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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.

Item Type: Article
Uncontrolled Keywords: Gender gap; Firm organisation; Gender quota; Trickle-down effect
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 30 Sep 2021 11:42
Last Modified: 07 Jul 2022 08:47

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