<p>While a large body of literature has focused on identifying the causes of female under-representation in hierarchical positions, relatively little is known about the impact of female leadership on gender outcomes among employees. Using 26 years of high-quality, matched employer–employee administrative data from Uruguay, this paper examines how the gender composition in hierarchical positions within firms influences employees’ gender gaps. Our results indicate that a higher proportion of female bosses within firms is associated with narrower pay gaps. After accounting for unobserved heterogeneity through fixed effects for workers and bosses, we find that increasing female representation among managerial roles increases female monthly salaries by 2.6–3.3 log points—approximately a reduction of 15% of the 20 log points of the overall gender wage gap. This effect has become more pronounced recently, especially in firms with higher female representation in hierarchical positions. Furthermore, we find that greater female representation in leadership positions increases the number of female workers through two channels: more women are hired, and fewer women leave the firms. Finally, we provide suggestive evidence that female bosses improve job matching, reducing gender gaps; female bosses reduce gender pay differences by 20–25% for new hires and 20% for those who switch jobs more often.</p>

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Are female bosses a path to equality? Evidence of their incidence on gender gaps

  • Rodrigo Ceni,
  • Estefanía Galván,
  • Cecilia Parada,
  • Agustina Romero

摘要

While a large body of literature has focused on identifying the causes of female under-representation in hierarchical positions, relatively little is known about the impact of female leadership on gender outcomes among employees. Using 26 years of high-quality, matched employer–employee administrative data from Uruguay, this paper examines how the gender composition in hierarchical positions within firms influences employees’ gender gaps. Our results indicate that a higher proportion of female bosses within firms is associated with narrower pay gaps. After accounting for unobserved heterogeneity through fixed effects for workers and bosses, we find that increasing female representation among managerial roles increases female monthly salaries by 2.6–3.3 log points—approximately a reduction of 15% of the 20 log points of the overall gender wage gap. This effect has become more pronounced recently, especially in firms with higher female representation in hierarchical positions. Furthermore, we find that greater female representation in leadership positions increases the number of female workers through two channels: more women are hired, and fewer women leave the firms. Finally, we provide suggestive evidence that female bosses improve job matching, reducing gender gaps; female bosses reduce gender pay differences by 20–25% for new hires and 20% for those who switch jobs more often.