The debate over whether female leaders hold an advantage in navigating organizational crises has gained increasing attention across academic and public discussions. While female executives are often recognized for their relational and empathetic qualities, their potential role in mitigating employee mental distress during challenging periods remains poorly understood. This paper investigates whether individuals employed at firms led by female executives experience fewer increases in mental distress—measured through psychotropic medication usage—following increases in import competition. Drawing on a comprehensive employer-employee dataset of Dutch manufacturing firms (2011-2019), our findings suggest employees of female-led firms are less likely to experience mental distress issues during these shocks. By linking executive characteristics to employee mental distress, this study introduces a novel perspective to the upper echelons literature.
