The influence of the gender quota on the compensation gap in the board of directors
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2021-07-07
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en
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Many countries have implemented a gender quota to improve the representability of females in higher positions such as the board of directors. Besides improving representability will the gender quota for the board of directors also reduce the gender pay gap in compensation? This research looks into the effect of the gender quota on the compensation gap. Additionally, the difference in effect of the advisory and mandatory quota is investigated in this research. Data of 10 countries within Europe over a period of January 2000 until January 2021 is included in the dataset. With the help of a fixed effects regression, the three hypotheses are tested. Empirical evidence shows that the compensation gap reduces when the percentage of females on the board of directors increases. The implementation of the gender quota also shows to reduce the compensation gap. Nevertheless, this variable is statistically not significant. Furthermore, the results show that the implementation of the mandatory quota reduces the compensation gap, while implementation of the soft quota increases the compensation gap. Therefore, it can be concluded that the implementation of the gender quota lowers the compensation gap when the mandatory quota is implemented.
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Faculteit der Managementwetenschappen