Ten years ago, Norway, the progressive paradise, took a drastic step to address this gender gap at the top of corporations. Its Minister of Trade and Industry Ansgar Gabrielsen of the Conservative Party introduced a mandatory gender quota of 40 percent for the boards of all public limited companies. The passing of this draconian law means, “If a company breaks the gender quota rules in Norway, it will be denied registration as a business enterprise in the Brønnøysund Register Centre and be subject to forced dissolution by the courts.” Following Norway’s example, a dozen other European countries, including France, Germany and Italy, adopted similar gender quotas- — 30 to 40 percent of corporate boards must be made up of women.
Ten years later, The Economist reported how the policy turned out based on data from Norway and other European countries with similar gender quota policies. On the surface, it seems the gender quota mandate achieved its desired outcome — female representation on corporate boards in these European countries increased. “In some countries the share of women among directors of large companies has increased four- or fivefold since 2007.” But as always, the devil is in the details.
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As The Economist reported, the most puzzling information revealed by the data is that the quota mandate “had no discernible beneficial effect on women at lower levels of the corporate hierarchy.” Proponents of such a policy have long promised that more women in leadership positions would translate to more career opportunities and promotions for women in the lower levels, which in turn will lead to better paying jobs and a shrinking gender pay gap. But that promise turned out to be wishful thinking.
Data shows that in France, Germany and the Netherlands, which all mandate women taking 30 to 40 percent of corporate board seats, only 10 to 20 percent of senior management jobs (one level below the board of director position) are held by women and that number has been consistent for the last 10 years. The Norwegians own study shows eight years after Norway introduced the law on gender equality in boardrooms, there are zero female CEOs in the country’s 60 largest companies. There is no data to demonstrate any higher pay or more career advancing opportunities for the vast majority of women in the workforce. Thus, having more women on the board has done little to benefit 99 percent of women in the workforce. Rather, it failed to lure more women to climb the corporate ladder and it failed to open up more mid-career opportunities and better pay.
Evidence From Norway Shows Gender Quotas Don’t Work For Women
Ten years later, The Economist reported how the policy turned out based on data from Norway and other European countries with similar gender quota policies. On the surface, it seems the gender quota mandate achieved its desired outcome — female representation on corporate boards in these European countries increased. “In some countries the share of women among directors of large companies has increased four- or fivefold since 2007.” But as always, the devil is in the details.
[clip]
As The Economist reported, the most puzzling information revealed by the data is that the quota mandate “had no discernible beneficial effect on women at lower levels of the corporate hierarchy.” Proponents of such a policy have long promised that more women in leadership positions would translate to more career opportunities and promotions for women in the lower levels, which in turn will lead to better paying jobs and a shrinking gender pay gap. But that promise turned out to be wishful thinking.
Data shows that in France, Germany and the Netherlands, which all mandate women taking 30 to 40 percent of corporate board seats, only 10 to 20 percent of senior management jobs (one level below the board of director position) are held by women and that number has been consistent for the last 10 years. The Norwegians own study shows eight years after Norway introduced the law on gender equality in boardrooms, there are zero female CEOs in the country’s 60 largest companies. There is no data to demonstrate any higher pay or more career advancing opportunities for the vast majority of women in the workforce. Thus, having more women on the board has done little to benefit 99 percent of women in the workforce. Rather, it failed to lure more women to climb the corporate ladder and it failed to open up more mid-career opportunities and better pay.
Evidence From Norway Shows Gender Quotas Don’t Work For Women
