Tiantian Yang, Management, The Wharton School; Jasmine Wu, Postdoc, Wharton People Analytics
Abstract: Our research delves into the evolution of startups into established organizations, focusing on how gender diversity influences this transition. Startups typically shift from informal management to formal bureaucratic structures as they grow. This study investigates the impact of increasing female employment on this process. Using a dataset of 28,315 U.S. startups, we find that startups with more female employees tend to add administrative roles faster but add managerial positions more slowly. These findings highlight the complex interplay between gender diversity and organizational formalization, providing valuable insights for strategic management and promoting equitable career advancement within startups.