How do consumers respond to female electoral victories? Evidence from Indian state elections

Female political leadership is associated with increased investments in health and education, and lower corruption. However, social norms and stereotypes favor male leaders globally. This research examines the impact of the gender of leaders who won 1,319 state legislative assembly elections in India, on monthly post-election expenditures of 44,884 households. Identification relies on the occurrence of mixed-gender elections with narrow victory margins. Model estimates reveal that households in districts with more female leaders spend lesser. However, this negative effect is mitigated in rural districts with longstanding reservation for women in local governing bodies, and in districts where at least 10% of elected leaders are women. These results support a mechanism that consumer confidence in female leadership increases with increased exposure to female leaders, in ways that impact household expenditure. These results have implications for consumers faced with female leaders, female politicians, and for the recently passed Women’s Reservation Bill in India.