Can Female National Leaders Mitigate the Negative Effects of Diversity?

Abstract

Racial/ethnic diversity within groups, organizations, and even countries can have negative externalities if left unmitigated. The effects of inequality and exclusion can hinder overall productivity. An experimental study (N = 183) revealed that female leaders are expected to increase empowerment and improve economic outcomes more than male leaders in ethnically diverse settings. Surveys from over 244,000 subjects in 77 countries revealed that female leaders are associated with greater tolerance for diversity and self-expression, especially in highly diverse countries. Lastly, analysis of over 5,800 leader-year observations in 126 countries from 1950 – 2009 revealed that female leaders in highly ethnically diverse countries had mitigating effects on diversity that resulted in positive economic growth. The results imply that leadership in more diverse environments is key to making positive structural shifts around inequality and participation.