Seminario CEDE - Danila Serra

Managerial decisions, such as promotions and demotions, please some employees and upset others. We examine whether having to communicate  such decisions to employees, and knowing that employees may react badly, have a differential impact on men's and women's self-selection into leadership roles and their performance  if they become leaders. In a novel laboratory experiment that simulates corporate decision-making, we find that women are significantly less likely to self-select into a managerial position when employees can send them angry messages. Once in the manager role, there is some evidence of gender differences in decision-making, but no difference in final outcomes, i.e., overall profits. Male and female managers use different language to motivate their employees, yet  differences in communication styles emerge only when workers can send angry messages to managers. Finally, low-rank employees send more angry messages to female managers, and are more likely to question their decisions.