Insider’s Advantage: When Foreign Firms Do Not Capture Opportunity in the Local Labour Market

32 Pages Posted: 28 Dec 2020

See all articles by Alessandra González

Alessandra González

University of Chicago - Department of Economics

Date Written: December 18, 2020

Abstract

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]

Suggested Citation

González, Alessandra, Insider’s Advantage: When Foreign Firms Do Not Capture Opportunity in the Local Labour Market (December 18, 2020). Transnational Corporations Journal, Vol. 27, No. 3, 2020, Available at SSRN: https://ssrn.com/abstract=3752606

Alessandra González (Contact Author)

University of Chicago - Department of Economics ( email )

1126 E. 59th St
Chicago, IL 60637
United States

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