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Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality

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  • Fang, Sheng
  • Goh, Chorching
  • Roberts, Mark
  • Xu, Lixin Colin
  • Zeufack, Albert

Abstract

We use worldwide firm-level data to study how women-led firms differ from male-led firms in productivity, and investigate potential explanations for these differences. Women-led firms are more prevalent in countries with better rule of law, gender equality, and stronger individualistic culture, and in small firms and services industries. Relative to men-led firms, women-led ones have lower levels and growth of labor productivity, but similar levels of total factor productivity. The disadvantage is mainly in manufacturing firms, nonexistent in service firms, and only in small firms. Furthermore, the disadvantage in performance for women-led firms is smaller for countries with higher gender equality and lower burdens of household chores and domestic care for women. Finally, it is smaller where there is less emphasis on personal networks, less competition from informal firms, and the culture is more collective. The study does not find that the female leader disadvantage is amplified in corrupt environments.

Suggested Citation

  • Fang, Sheng & Goh, Chorching & Roberts, Mark & Xu, Lixin Colin & Zeufack, Albert, 2022. "Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality," World Development, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:wdevel:v:154:y:2022:i:c:s0305750x22000365
    DOI: 10.1016/j.worlddev.2022.105846
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    More about this item

    Keywords

    Gender; Female entrepreneurship; Competition; Network; Gender equality; Care duty; Culture; Business environment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L8 - Industrial Organization - - Industry Studies: Services
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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