Learning about women's competence: the dynamic response of political parties to gender quotas in South Korea

We study the dynamic responses of political parties to gender quotas in South Korean municipal councils, a setting with nearly zero women pre-quota. We exploit two unique institutional features: the quota intensity is discontinuous in council size; the quota regulates only one of two election arms. Political parties initially counteract the quota by nominating fewer women in the unregulated arm, but gradually reverse this response over time. Guided by a dynamic model of discrimination, we uncover statistical discrimination with incorrect beliefs about women's competence as the main mechanism driving party behavior. The quota triggers learning through exposure to competent women.