The Labor Market for Female Corporate Directors: Changes in Board of Director Composition from 1998 to 2000

Abstract

Women recently have made dramatic progress in representation on corporate Boards of Directors. This paper analyzes why this increase has occurred. Using a sample of 499 large American companies from 1998 and 2000, I test whether the rise in female director employment is due to increasing female human capital levels or whether gender is a relevant criterion for selection to boards. The results suggest that gender is a significant factor in the director selection process and that larger companies with more male directors are the most likely to add female directors.