Can Female Leaders Mitigate the Negative Effects of Racial Diversity? National Leaders and Structural Shifts

Abstract

Racial/ethnic diversity within groups, organizations, and countries can have negative externalities if left unmitigated. Inequality and exclusion, downsides of the diversity within societies, have been shown to hinder overall productivity. This study posits and finds that the presence of a female national leader mitigates such effects. Using a mixed-methods approach, we analyzed over 5,800 leader-year observations in 126 countries from 1950 – 2009 and found that having female leaders in highly ethnically diverse countries resulted in positive economic growth. We further analyzed survey results from over 245,000 respondents in 83 countries and found that female leaders in highly diverse countries are associated with greater individual-level participation such as self-expression and empowerment, especially among minority groups and women, and greater tolerance for diversity especially among majority group members. The empowerment and tolerance incentivized by female leaders is associated with increased economic performance in diverse countries. Implications for the changing gender composition of leadership throughout society are discussed.