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Market-Based Solutions to Vital Economic Issues

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Market-Based Solutions to Vital Economic Issues
Research
Jul 1, 2015

Female Leadership and Gender Equity: Evidence from Plant Closure

Abstract

We use unique worker-plant matched panel data to measure differences in wage changes experienced by workers displaced from closing plants. We observe larger losses among women than men, comparing workers who move from the same closing plant to the same new firm. However, we find a significantly smaller gap in hiring firms with female leadership. The results are strongest among women who are displaced from male-led plants and from less competitive industries. Our results suggest an important externality to having women in leadership positions: they cultivate more female-friendly cultures inside their firms.

Note: Research papers posted on SSRN, including any findings, may differ from the final version chosen for publication in academic journals.


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