smith n. 2014 gender quotas on boards of directors iza world of labor 2014 7


Elevator Pitch

Arguments for increasing gender diversity on boards of directors by gender quotas range from ensuring equal opportunity to improving firm performance. The introduction of gender quotas in a number of countries has increased female representation on boards. Current research does not justify gender quotas on grounds of economic efficiency. In many co...

Author's Main Message

From an economic efficiency perspective, ensuring that there are good female candidates for board positions requires widening the pipeline of women progressing to senior management and top executive positions. Policymakers may have to change their focus from requiring quotas for the top of an organization to the much broader task of getting a more ...

Do gender quotas increase gender diversity on boards of directors?

Arguments for increasing gender diversity on boards of directors by gender quotas range from ensuring equal opportunity to improving firm performance. The introduction of gender quotas in a number of countries has increased female representation on boards. Current research does not justify gender quotas on grounds of economic efficiency.

What is the gender quota in Italy?

Italy introduced a gender quota of 20% in 2011, which was gradually increased to 33% in 2015. The short-term effects on firm performance of this Italian quota seem to be minor or insignificant [7].

What is the minimum quota for female board members?

The European Commission has considered a binding minimum quota for female board members of 30% by 2015 and 40% by 2020, and some EU countries have implemented similar quotas ( Figure 1 ).

What are the benefits of quotas on boards of directors?

Quotas increase the number of women on boards of directors. The decision-making process improves with greater gender diversity on boards. Having female board members seems to improve board attendance. Having female top executives may have positive effects on the career development of women at lower levels of an organization.

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