However, especially for companies confronted with the call for gender equality, it is important to understand how increasing gender diversity impacts the individual performance of employees and whether the theoretical prediction of a positive relationship really occurs in practice. From a theoretical point of view, gender diversity is, under specific conditions, supposed to enhance performance ( Lazear, 1999a). Hence, the typically male-dominated industries have become the nucleus of public debate regarding initiatives for greater women’s labor market participation.Ĭonsequently, company leaders in those industries are increasingly more frequently confronted with requirements on gender-equal hiring and employment practices. Furthermore, among graduates with science degrees, 71% of men but only 43% of women work as professionals in the physics, mathematics, and engineering spheres ( OECD, 2018b). Stylized facts indicate that there is a substantial backlog for women – in OECD countries, only 24% of the female students graduate from university in a STEM-subject ( OECD, 2018a). Among others, numerous political initiatives have been launched to get more women into traditionally male-dominated fields, such as Science, Technology, Engineering, and Math (STEM)-related professions ( Levere, 2018). In most industrialized countries, there is an unambiguous political consensus that women should be a vital part of the labor market ( Verick, 2018). This result on negative downward-flowing effects requires a deeper analysis on the corporate cultural background. In terms of downward-flowing effects, female supervisors in this particular industry are estimated to have a negative effect on the performance of both, men and women. For women, this relationship cannot be confirmed. This shows that men’s performance is the highest in gender-balanced teams. Consistent with prevailing theory, the within-ranks analysis reveals that the performance of men in relation to a higher share of female peers follows a cubic pattern. Using a fixed-effects regression model, the present paper investigates two different constellations: 1) how growing female representation impacts the individual performance of workers at the same hierarchical level (within-ranks) 2) how growing female representation at the next highest rank impacts the performance of subordinated workers (downward-flowing). The research setting of this study is the Norwegian oil industry as a typically male-dominated sector. However, it is still not clear how growing female representation impacts the individual performance of workers in these sectors. Getting more women into male-dominated industries has become the nucleus of public debate in many industrialized countries.
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