Female entrepreneurship, Firm Productivity and Gender Pay Gap: Evidence from the UK

Abstract

This paper looks at the role of board of directors gender composition and firm productivity on the Gender Pay Gap in the UK. The analysis combines different sources of UK administrative data for employers with at least 250 employees. Findings show that more productive firms report higher Gender Pay Gap. This is because women are relatively under-represented at the top of the pay distribution. Even when they get a senior position, women face within-firm inequalities and earn less than men in the same role. Finally, a more gender diverse managing board can decrease the pay gap since female directors are associated with better pay of female employees. This result is more prominent for companies with less than 5,000 employees.

Yannis Galanakis
Yannis Galanakis
Postdoctoral Research Associate