IDEAS home Printed from https://ideas.repec.org/a/oup/econjl/v130y2020i631p2272-2290..html
   My bibliography  Save this article

It’S Getting Crowded in Here: Experimental Evidence of Demand Constraints in the Gender Profit Gap

Author

Listed:
  • Morgan Hardy
  • Gisella Kagy

Abstract

This article considers market-level contributors to the well-documented gender profit gap among micro-entrepreneurs. We combine data from a garment-making firm census and market research survey in Ghana, uncovering a gender gap in the market-size-to-firm ratio and observing disproportionate self-reports of ‘not enough customers’ from female owners. We develop a simple model and discuss implications of potential gender differences in demand constraints. As experimental corroboration, we show that female-owned firms expand production and experience profit increases in response to random demand shocks, while male-owned firms do not. Nationally representative data echoes our experimental findings, showing more crowding in female-dominated industries.

Suggested Citation

  • Morgan Hardy & Gisella Kagy, 2020. "It’S Getting Crowded in Here: Experimental Evidence of Demand Constraints in the Gender Profit Gap," The Economic Journal, Royal Economic Society, vol. 130(631), pages 2272-2290.
    • Handle: RePEc:oup:econjl:v:130:y:2020:i:631:p:2272-2290.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ej/ueaa040
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davies, Elwyn & Deffebach, Peter & Iacovone, Leonardo & McKenzie, David, 2024. "Training microentrepreneurs over Zoom: Experimental evidence from Mexico," Journal of Development Economics, Elsevier, vol. 167(C).
    2. Catia Batista & Sandra Sequeira & Pedro C. Vicente, 2022. "Closing the Gender Profit Gap?," Management Science, INFORMS, vol. 68(12), pages 8553-8567, December.
    3. Ubfal, Diego, 2024. "What Works in Supporting Women-Led Businesses?," IZA Discussion Papers 16950, Institute of Labor Economics (IZA).
    4. Jesica Torres & Franklin Maduko & Isis Gaddis & Leonardo Iacovone & Kathleen Beegle, 2023. "The Impact of the COVID-19 Pandemic on Women-Led Businesses," The World Bank Research Observer, World Bank, vol. 38(1), pages 36-72.
    5. Merfeld, Joshua, 2021. "Misallocation and Agricultural Production: Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315914, International Association of Agricultural Economists.
    6. Merfeld, Joshua D., 2022. "Labor Elasticities, Market Failures, and Misallocation: Evidence from Indian Agriculture," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321214, Agricultural Economics Society - AES.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:econjl:v:130:y:2020:i:631:p:2272-2290.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.