Female managers and firm performance: Evidence from the Caribbean countries

This paper investigates whether firm performance differs significantly when comparing firms with female and male top managers in the Caribbean region. We use survey data with detailed information on gender for firms in 13 Caribbean countries. Our methodology is based on Blinder–Oaxaca decomposition and propensity score matching econometric techniques. These allow us to ascertain whether there is a gender gap in labour productivity in these countries and the extent to which the characteristics of the management team, the firm, and/or environmental constraints hamper the normal development of production or service activities. The results from the regression analysis indicate that female-managed firms are, on average, 16 per cent less productive than male-managed firms. This difference is reduced to 8 per cent when using propensity score matching and when comparing firms and management teams with similar characteristics. Moreover, having some gender diversity in the management team contributes to increasing labour productivity.