Female Hires and the Success of Start-up Firms

We investigate the relationship between females among the first hires of start-up companies and business success. We have established that female first hires influence the development of human resources by increasing the share of female workers in the start-up phase of the firm. We have also found t...

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Bibliographic Details
Published in:	The American economic review 2010-05, Vol.100 (2), p.358-361
Main Authors:	Weber, Andrea, Zulehner, Christine
Format:	Article
Language:	eng
Subjects:	Business structures Collaboration Employment Female employees Gender Gender equality GENDER, JOBS, SUCCESS, AND PLACEMENT Human resources Identifiers Labor economics Linear regression Managers Organization development Start up firms Startups Studies Success Success factors Wages Wages & salaries Women Womens rights Workers Workforce
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Summary:	We investigate the relationship between females among the first hires of start-up companies and business success. We have established that female first hires influence the development of human resources by increasing the share of female workers in the start-up phase of the firm. We have also found that there is a strong significant effect of female first hires on the success of a firm measured by its survival. Based on the evidence that first hires earn higher wages than average workers, we argue that first hires likely hold key positions are are involved in important business decisions. Our results can therefore be taken as evidence for the role of gender diversity in leading ranks.
ISSN:	0002-8282 1944-7981