How is global commerce affecting the gender composition of employment? A firm-level analysis of the effects of exposure to gender norms via trade and FDI

Global firms have a higher share of female employees than domestic non-exporters. To explain this fact, this paper tests whether international trade and FDI are channels through which norms regarding gender (in)equality are transmitted from customers and investors to firms. We employ pooled cross-sectional data from 2007–2016 for around 28,000 firms in 104 different countries. We compare global versus non-global firms in the same market to study the influence of firms’ exposure to gender norms in commercial partner countries. The results show a race to the top for low- and mid-level jobs and the opposite for top managerial positions. • Global firms have more gender-equal employment than domestically-owned non-exporters. • We study whether this is explained by the transmission of gender norms via trade/FDI. • We show causal evidence that exposure to gender norms affects global firms’ hiring decisions. • Our results show a race to the top in gender equality for low- and mid-level jobs. • However, firms exposed to gender inequality are less likely to have a female top manager.