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European Instiute of Japanese Studies, Stockholm School of Economics EIJS Working Papers Series

No 242:
Does Assigning More Women to Managerial Positions Enhance Firm Productivity? Evidence from Sweden

Yoshihiro Sato () and Michihito Ando ()

Abstract: We analyze whether gender composition at non-board managerial levels has any impact on firm productivity and other related outcomes in the service sector using a linked employer-employee dataset from Sweden. Exploiting within-firm variation, we apply a difference-in-differences propensity score matching method to address an endogeneity issue. Our results suggest no significant effects on productivity but significant positive effects on firms' growth in terms of value added and labor inputs when a firm “replaces” a male manager with a woman. We do not observe any impact when a firm “appoints” a woman instead of a man to a new managerial position.

Keywords: Gender; Gender diversity; Firm productivity; Manager; Difference-in-differences matching; Propensity score matching; (follow links to similar papers)

JEL-Codes: J16; J24; J71; J82; (follow links to similar papers)

59 pages, January 9, 2017

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