Why do so few European women reach top management … · 2020-05-16 · •Italy, Iceland, France,...
Transcript of Why do so few European women reach top management … · 2020-05-16 · •Italy, Iceland, France,...
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Why do so few European women reach top management positions — and does it matter?
Berlin, October 9, 2012, Nina Smith
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Agenda: 1. Why important?
2. A few facts – Women in Top positions in Europa?
3. Why – where are the women?
4. Does it matter?
5. Where to go? Policy implications?
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Females in Top Positions - Why important?
• Does it matter for the ’average woman’ in Europe? • Yes, power matters!
• Can Europe afford to lose talent? • No, Europe is in trouble in many ways!
• Huge investments in education of the female work force • Girls are very succesful at school and university
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Women are in the lead in the educational system
4 Source: OEC D, Educa tion a t a G la nce 2011, C ha rt A4.1
0,010,020,030,040,050,060,070,080,0
Percentage of tertiary degrees awarded to women, All fields of education (2009)
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Politicians are changing signals
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Northern Future Forum http:/ / www.bbc.co.uk/ news/ uk-politics-16958852 9 Februa ry 2012 La st upda ted a t 11:47 G MT
David Cameron won't rule out women in boardrooms quotas Bloomberg Febr 9, 2012: C ompa nies ma y fa ce quota s unless they promote more women to boa rd level, U.K. Prime Minister C a meron sa id a rguing tha t businesses a re “fa iling” the economy by not ha ving enough fema les in senior positions. Appointing women a s directors a nd encoura ging them a s entrepreneurs a re “a bout qua lity, not just equa lity,” C a meron sa id a t a meeting of the Northern Future Forum in Stockholm toda y.
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Vivia ne Reding´(2012): sa ys equa lity will ta ke a nother 40 yea rs without tough a ction Published 06 March 2012: EU Justice Commissioner Viviane Reding has kicked off a three-month debate that could result in more decisive legislative action, a year after she called on companies to take voluntary steps to increase the number of women on boards to 30% by 2015 and 40% by 2020. http:/ / www.euractiv.com/ socialeurope/ reding-jump-starts-debate-gender-news-511294
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A Few Facts: Women in top positions in Europe
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Female fraction on boards, largest listed companies, EU+, 2011,
40 %
http:/ / ec.europa .eu/ justice/ gender-equa lity/ gender-decision-ma king/ da ta ba se/ business-fina nce/ quoted-compa nies/ index_en.htm
EU27
U
SA
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Times are changing – in most Europea n countries
G erma ny
Denma rk
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The ”Pipeline”: Very few female CEOs in largest companies!
GERMANY 2011 (source, DIW Ec. Bull 4, 2012):
• Female CEOs - Top 100 companies: 0
• Female CEOs – Top 200 companies: 1
• Females on management boards – Top 100: 2.4%
• Females on management boards – Top 200: 3.0%
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Women in top management positions in the 2000 largest private sector companies in Denmark,
Source Smith et al. (2012)
Denmark is not very different from Germany!
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fem
ale
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Management boa
CEO
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Why – where are the women?
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The ”usual suspects” 1. ‘Old boys’ network’ – discriminating companies?
2. Women choose the ’wrong’ career tracks?
3. Women’s responsibilities at home?
4. Preferences, values, and gender stereotyping?
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1. ’Discriminating’ companies?
•We do not find that individually discriminating companies can
account for much of the gender gap in promotion
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Smith, Smith and Verner (2012, forthcoming Industria l a nd La bor Rela tions Review): ”Why are So Few Females Promoted into CEO and Vice-President Positions?” A panel study of the 2000 largest Danish companies 1997-2007 (plus other recent research results) -----------------------------------------------------
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2. Women choose the ’wrong’ career tracks Yes, women ’crowd’ in public sector, HR but not in typical Vice-CEO-tracks
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3. Household responsibilities and children?
• Ma rria ge a nd children fa vour men’s ca reer/ promotion cha nces
• Men who ta ke up pa renta l lea ve a re ’punished’ (when pa renta l lea ve schmes a nd no fa ther quota )
• W omen a re not in genera l individua lly ’punished’ with respect promotion cha nces due to fa mily responsibilities in Denma rk
Smith, Smith & Verner (2012) Nielsen, Simonsen & Verner (2004)
G upta & Smith (2002) G upta , Smith a nd Stra tton (2007) Smith, Smith & Verner (2011, 2012)
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GERMANY: Household responsibilities for German managers – the classical picture - also for female managers
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4. Preferences, values and gender-stereotyping? Difficult to document in ’hard register data’ and quantitative statistical analyses
Q1: Are men and women different? Do men and women have different preferences?
Experimental research (Niederle and Vesterlund (2007) and many more recent studies):
Yes, men and women are different. Women tend to shy away from competition, not because that women
are much more risk averse than men, but because men are much more self-confident on their abilities and performance than women!! Women have less preferences for performing in a competition!
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Q2: Is gender stereotyping still an important issue? Schein (1973): ”Think manager – think male” - hypothesis
Survey questions and more qualitative data:
Gender stereotyping is still widespread in Europe (though difficult to separate inherent preferences from gender stereotyping in research)
EUROBAROMETER 2012:
QE1.1: Women are less interested than men in positions of
responsibility? (in the labour market)
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EU Ba rometer 2012: QE1.1: Women are less interested than men in positions of responsibility (in the labour market)
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WHY - DENMARK? Boomerang effects of female friendly schemes if not gender neutral? See Gupta, Smith and Verner (2008)
• Family friendly policies were introduced in Scandinavian countries in the 1960s and 1970s - helped women enter the labour market
• Negative side effects of some policies: Maternal leave schemes
• Father quotas extended in Sweden, Norway and Iceland => fathers on leave in these countries
• Denmark different, parental leave extended – a father quota introduced 1998 – but was abolished in 2001!
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Take-up of parental leave schemes in Denmark: ’Mother’s business’
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0
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1986
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Source: Statistics Denmark and Smith (2012)
Mother
1984/ 85: 10 weeks pa renta l lea ve
1994: 52 weeks child ca re lea ve
2002: 26 weeks pa renta l lea ve
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Danish fathers do not take much leave!
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Source: Statistics Denmark and Smith (2012)
Mother
Father
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Why focus so much on gender neutral schemes? Our hypotheses which we have not (yet) causally proven but found many
empirical indications of:
1. Women are not individually harmed much from take-up of parental/maternal leave
2. A collective burden on all women and potential mothers – statistical discrimination!
3. Opposite for men: Men are indvidually ’punished’ if they take up leave but benefit from having children
=> The gender stereotyping mechanisms
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Women in top management positions
Does it matter?
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Does it matter? Sources: Smith et al. (2006), Adams and Ferreira (2009), Huse & Nielsen (2010), Matsa & Miller (2011), Ahern & Dittmar (2012)
•Equal opportunities and fairness
•The talent pool – better ressource allocation •Better decision making processes in gender diverse decisions making bodies
•No clear answers from international research on the relation between women on boards and firm performance
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Norway 6 years after the quota law
•Norway: Female share of board members in 2002: 9-10%
•December 2003: Law is passed in Parliament. 40% of board of directors shall be women ultimo 2005 in listed companies (ASA). Voluntary compliance.
•Ultimo 2005: The goal of 40% was not fulfilled.
•2006: New law was passed. ASA-Firms that did not comply January 2008 would be closed down.
•2008: April: 40% goal was reached in ASA firms
•2012: Mixed results from research on economic consequences
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27 Source: Ahern a nd Dittma r, 2012
Has the Quota helped to get more female CEOs in Norway?
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Where to go - Policy implications?
Quotas? Soft Law?
Or other policy measure?
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Quotas - European countries
• Norway: 40%
• Italy, Iceland, France, Belgium : 20/30/33/40% binding quotas
• Spain, Netherlands : 30/40% quotas but no sanctions
• More or less voluntary initiatives – in many Europeans countries: • Heated discussions • Soft laws on good corporate governance – diversity on board of directors • Targets for women in management
• Germany: Flexi quota • Denmark: A ’Flexi quota’ for 1100 largest companies: Selfdefined
(ambitious) goals for BOTH female proportion on board of directors and management board plus execuitves at lower levels – addressing ’the pipeline problem’
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See:
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EU proposal: 30% in 2015 and 40% in 2020: And female fraction on boards, largest listed companies, EU+, 2011
30 % 2015
40 % 2020
http:/ / ec.europa .eu/ justice/ gender-equa lity/ gender-decision-ma king/ da ta ba se/ business-fina nce/ quoted-compa nies/ index_en.htm
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Policy IS needed!
•Quotas? • A pipeline of qualified women? • Will more soft regulations of companies have any effect? • Do quotas have ”spreading effect” in top management?
•Gender neutral family friendly schemes? Break ’gender stereotyping’ mechanisms • The gender roles at home have to change if more women
on boards – the long steady pull!! • => Quotas on parental leave – it starts with the babies!
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