Department of Political Science

The diversity literature expects that an equal mix of men and women improves performance, but existing studies show very weak associations. This paper argues that gender diversity does matter, but that the relationship is more complex than assumed. Based on motivational crowding theory, we argue that men and women respond differently to economic incentives. We analyze how gender, incentives and the perception of these incentives at research institutions affect organizational performance, measured as the number of scientific publications. Using data from 2000-2005, the analysis includes 162 Danish research institutions (17 government research institutions and subunits of 10 universities). The main conclusion is that gender diversity has a modest, but positive impact on organizational output, and that women and men seem to react differently when economic incentives are introduced.