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Female Entrepreneurship in the U.S. 1982 - 2012: Implications for Welfare and Aggregate Output

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  • Pedro Bento

    (Texas A&M University, Department of Economics)

Abstract

The number of women-owned businesses in the U.S. has soared over the last several decades, even compared to the rise in female labor market participation. In 1982 less than 9 percent of working women owned businesses, compared to over 17 percent of men. By 2012 more than 18 percent of women owned businesses while the analogous rate for men only slightly increased to almost 20 percent. This and other evidence suggests that women have faced significant barriers to starting and running businesses and these barriers have been declining over time. I examine the impact of these trends on aggregate output and the welfare of women and men in the labor force. Interpreted through the lens of a model of entrepreneurship, observed trends imply substantial declines in several barriers facing female entrepreneurs. Together, these changes account for over 12 percent of observed growth in aggregate output, a 3 percent decrease in men's welfare, and an 18 percent increase in the welfare of women since 1982. These impacts are in addition to any gains to workers from declining labor market barriers.

Suggested Citation

  • Pedro Bento, 2020. "Female Entrepreneurship in the U.S. 1982 - 2012: Implications for Welfare and Aggregate Output," Working Papers 20201201-001, Texas A&M University, Department of Economics.
    • Handle: RePEc:txm:wpaper:20201201-001
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    File URL: https://pvsessions.tamu.edu/RePEc/bentoFemaleEntrepreneurship.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bento, Pedro & Hwang, Sunju, 2023. "Barriers to black entrepreneurship: Implications for welfare and aggregate output over time," Journal of Monetary Economics, Elsevier, vol. 134(C), pages 16-34.
    2. Ranasinghe, Ashantha, 2024. "Gender specific distortions, entrepreneurship and misallocation," Journal of Economic Dynamics and Control, Elsevier, vol. 162(C).
    3. Marta Morazzoni & Andrea Sy, 2021. "Female Entrepreneurship, Financial Frictions and Capital Misallocation in the US," Working Papers 1299, Barcelona School of Economics.

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    More about this item

    Keywords

    women; entrepreneurship; business dynamism; misallocation; aggregate productivity; economic growth.;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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