Insider’s Advantage: When Foreign Firms Do Not Capture Opportunity in the Local Labour Market
32 Pages Posted: 28 Dec 2020
Date Written: December 18, 2020
Previous studies have argued that, relative to local firms, multinational firms may have an “outsider’s advantage” in hiring women. Using a large data set of executives in the countries of the Gulf Cooperation Council, in a region with some of the lowest rates of female labour force participation in the world, I present new evidence of a setting in which foreign firms do not capture opportunity in the local labour market. I find that foreign firms, on average, are not more likely than local firms to hire female executives and are less likely to place women into top management roles. I propose that foreign firms may have fewer social networks and resources, or lack “insider’s
advantage”, relative to local firms for recruiting women into executive positions.
Keywords: [comma seexecutives, diversity, gender, global strategy, labour markets, management, multinationals, organizational behaviourparated]
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