Do Female Managers Affect Productivity? Evidence from Zimbabwean Manufacturing Firms

Abstract

AbstractUsing a large dataset of Zimbabwean manufacturing firms extracted from the two waves of World Bank Enterprise Surveys of 2011 and 2016, the study investigates the impact of female management on firm's productivity in Zimbabwe's manufacturing firms. The study estimates a modified production function, to incorporate gender dimension, using a random effects estimation model. The results show that the effect of having a female manager on firm productivity varies by geographical location in the case of Zimbabwe. Specifically, the productivity of firms which have a female top manager, and are located in Harare, experience a negative productivity differential as they significantly reduce their productivity gap by 9.9 percent. On the other hand, the study found that having a female top manager in manufacturing firms located in Bulawayo significantly increases productivity by 7.9 percent compared to firms located in the Midlands area. We also find that the effect of a female manager on firm productivity differs by sectors, stressing the need for domestic economic policy to consider these dynamics. Given the importance of location in determining the contribution of a production manager on firm performance, the government may need to implement policies that consider location‐specific factors to enhance productivity of the manufacturing sector of Zimbabwe.