Women in Finance

Across countries, banks have less gender diverse boards than other firms. Bank board diversity is particularly low in countries with greater gender gaps in PISA math scores and lower average math scores. We find similar results using state-level NAEP math scores in the United States. The influence of math scores appears to transcend standard cultural explanations. Female directors are more likely to have an MBA in banks, especially in countries with greater gender gaps in math scores.
Our results suggest that low female participation in STEM and finance fields has important consequences for corporate leadership structures in STEM and finance industries. To ensure that the best managerial talent is in charge of firms, it may not be enough to ask or mandate firms to have more women on their board. Board diversity policies may need to be adapted to industry circumstances. They may also need to be complemented by policies that ensure more equal education outcomes for girls and boys.
Our evidence suggests that differences in educational outcomes for boys and girls may have long-lasting implications for their career development.