Gender Quotas and Female Leadership
This paper reviews the evidence on the equity and efficiency impacts of gender quotas for political positions and corporate board membership. Adoption of quotas by countries is likely correlated with attitudes about women within a country. The randomized allocation of political quotas in India and the unanticipated introduction of board quotas in Norway have allowed researchers to provide causal analysis,and this paper focuses on evidence from these two settings. The Indian evidence demonstrates that quotas increase female leadership,influence policy outcomes,and reduce gender discrimination in the long-term. The Norway evidence shows that,while female entry on boards is correlated with changing management practices,this change appears to adversely influence short-run profits. This may be partly driven by negative perceptions of female management choices. In regards to the broader cross-country context,evidence in many different settings has shown that political and corporate entities often act strategically to circumvent the intended impact of quotas. It is reported that the design of the quota and selection systems matter for increasing female leadership.