Female Ownership of Firms and Regulation Experience

The presence of gender disparity in de jure rules across the world is relatively well-known. Many studies show that this disparity is detrimental to female labor participation. Our focus is different in that we examine whether firms with females amongst ownership experience elevated time costs and burdens associated with government regulations relative to their male-owned counterparts. In this sense, we are interested in both de facto and de jure differences in governmental regulation. Using firm-level data and two alternative matching methods, our results suggest that firms with at least one female owner report that senior management spends a larger percentage of their time dealing with regulations. We also find that construction permits take approximately 4–7 days longer to obtain for these same firms. Lastly, we find that female-owned firms perceive labor regulations to be a larger obstacle to business operations. In all cases, these effects tend to be largest in countries with the most disparity in de jure rules. However, the gap remains even in the most de jure equal countries.