Intra-firm hierarchies and gender gaps

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 di-rectors 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.

Automated summary

This study examines how changes in female representation at the top of a firm's organization affect gender-specific outcomes across firm hierarchies. The findings show that a recent reform in France, which imposed gender representation quotas on corporate boards, successfully reduced gender wage and representation gaps at the upper layers of firms. However, this policy did not have the same impact on lower firm layers. The Panel VAR analysis suggests that quotas targeting middle management may have a more widespread effect across the firm.