Economics BEAT Seminar - Rebecca Heath - (Cambridge) - "Willingness to Lead in Precarious Times: Supply-Side Evidence on the Glass Cliff"

Women often take leadership positions with a high risk of failure, a phenomenon known as the Glass Cliff. While existing literature has focused on demand-side motivations for nominating women for precarious positions, limited attention has been paid to the supply-side. In this study, we investigate gender differences in the willingness to lead financially successful versus financially failing organisations, under two different leadership selection mechanisms. Under the Opt in mechanism, candidates must actively express interest in the leadership position. Under the Opt out mechanism, all qualified individuals are automatically considered for the leadership position, unless they actively choose to decline. We find that, under Opt in, men are less likely to apply for leadership in failing organisations compared to successful organisations, whereas women’s willingness to lead is not affected by financial status. As a result, a gender gap emerges in leadership for successful organisations but not for failing organisations. However, under Opt out, this gap disappears, suggesting the leadership selection mechanism plays an important role in shaping the conditions under which the Glass Cliff arises.