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The Labor Productivity Gap between Formal Businesses Run by Women and Men

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  • Asif M. Islam
  • Isis Gaddis
  • Amparo Palacios López
  • Mohammad Amin

Abstract

This study analyzes gender differences in labor productivity in the formal private sector, using data from 126 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among women- than men-managed firms. The analyses are based on women’s management, which is more strongly associated with labor productivity than women’s participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of women-managed firms relative to firms managed by men: Fewer women-managed firms protect themselves from crime and power outages, have their own websites, and are (co-)owned by foreigners. In addition, in the manufacturing sector, women-managed firms are less capitalized and have lower labor costs than firms managed by men.

Suggested Citation

  • Asif M. Islam & Isis Gaddis & Amparo Palacios López & Mohammad Amin, 2020. "The Labor Productivity Gap between Formal Businesses Run by Women and Men," Feminist Economics, Taylor & Francis Journals, vol. 26(4), pages 228-258, October.
    • Handle: RePEc:taf:femeco:v:26:y:2020:i:4:p:228-258
    DOI: 10.1080/13545701.2020.1797139
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    Citations

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    Cited by:

    1. Douwere Grekou & Jenny Watt & Horatio M. Morgan, 2023. "Gender productivity gap: does gender-equal ownership compensate for female entrepreneurs’ lack of prior industry experience?," Small Business Economics, Springer, vol. 60(4), pages 1543-1571, April.
    2. Naveed, Amjad & Wang, Cong, 2023. "Innovation and labour productivity growth moderated by structural change: Analysis in a global perspective," Technovation, Elsevier, vol. 119(C).
    3. Ubfal, Diego, 2024. "What Works in Supporting Women-Led Businesses?," IZA Discussion Papers 16950, Institute of Labor Economics (IZA).
    4. Islam, Asif M. & Amin, Mohammad, 2023. "The gender labor productivity gap across informal firms," World Development, Elsevier, vol. 167(C).
    5. Silvia Muzi & Filip Jolevski & Kohei Ueda & Domenico Viganola, 2023. "Productivity and firm exit during the COVID-19 crisis: cross-country evidence," Small Business Economics, Springer, vol. 60(4), pages 1719-1760, April.
    6. 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.
    7. Hyland,Marie Caitriona & Islam,Asif Mohammed, 2021. "Gendered Laws, Informal Origins, and Subsequent Performance," Policy Research Working Paper Series 9766, The World Bank.
    8. Diego Javier Ubfal, 2023. "What Works in Supporting Women-led Businesses?," World Bank Publications - Reports 38564, The World Bank Group.

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