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The gender productivity gap: Evidence from the Indian informal sector

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  • Ira N. Gang
  • Rajesh Raj Natarajan
  • Kunal Sen
  • Myeong-Su Yun

Abstract

We examine the patterns and correlates of the productivity gap between male-owned and female-owned firms for informal enterprises in India. Female-owned firms are on average 45 per cent less productive than male-owned firms, with the clearest productivity gaps observed at the lower end of the productivity distribution. Using decomposition methods, we find that about 73 per cent of the productivity gap can be explained by structural effect, with the remainder being due to differences in observable characteristics as captured by composition effect.

Suggested Citation

  • Ira N. Gang & Rajesh Raj Natarajan & Kunal Sen & Myeong-Su Yun, 2021. "The gender productivity gap: Evidence from the Indian informal sector," WIDER Working Paper Series wp-2021-183, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-183
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    Cited by:

    1. Saheli Bose, 2023. "The penalty of work from home: gender gap in productivity of unorganised manufacturing firms in India," Small Business Economics, Springer, vol. 60(1), pages 351-369, January.

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    Keywords

    Gender; Productivity gap; India; Decomposition methods; Informal sector;
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