Effects of gender quotas in Italy. A first impact assessment in the Italian banking sector

Purpose – The purpose of this paper is to provide a first impact assessment of the Italian quota law in order to explore whether “gender equality by law” contributes to redefining, albeit in part, consolidating and establishing positions of power and decision making. The paper analyses these dynamics by focusing on a specific economic sector, the banking sector. The analysis strives to determine: whether binding quotas are giving rise to an apparent enforcement by building up new distortionary equilibria (such as new forms of horizontal segregation); what extent the financial crisis has impacted on the rhetoric of female representation, and whether it has pushed towards a “regenerative” organizational change aimed at achieving a more inclusive and egalitarian image. Design/methodology/approach – The paper is organized as follows. Section 1 reviews the theoretical and empirical debate on gender diversity and quota impact. Section 2 illustrates the recent EBA Survey’s outcome on gender diversity in the European banking system and focuses on the Italian scenario; Section 3 describes the Italian banking system and gives a first impact assessment on Italian banks of the mandatory gender quotas in Italy (the so-called “Golfo-Mosca law,” named after MPs who proposed the law); some qualitative considerations are carried out on the reactions of Italian banks to the financial crisis in terms of “bridge policies” aimed at corresponding to a higher demand of customer satisfaction and fairness. Section 4 concludes and summarizes the finding of the study. Findings – The Italian banking system is not so dramatically ranked among the EU countries as in the recent past. The gender rebalance in management bodies could be considered rather satisfying (the number of female directorships grew by 7 p.p. from 2013 to March 2016). If we compare ten-year-old findings, the number of women on board of directors has tripled. But data clearly show a dichotomy due to significant differences between listed and non-listed banks. In non-listed banks, women are still relegated to an under-represented position, reaching only 11 percent on boards of directors (as against 26 percent in listed banks). The data confirm the results found in non-financial sector that women are significantly better represented on audit boards. In accordance with all previous studies, no relevant changes can be noticed on key-decision roles: no CEOs or Directors general are women in listed banks, and women are always more represented in non-executive functions. Originality/value – The paper analyses the law experience in Italy (law that is considered a best practice by the European Commission also because it is a unique case in Europe) as a significant case study by proving that rules such as temporary binding gender quotas (introduced by law in 2011) can be useful, but not always enough to remove blocking or distortive factors in organizational ladders.