Explaining the gender gap in profits among entrepreneurs in Malawi

Explaining the gender gap in profits among entrepreneurs in Malawi PDF Author: Duval-Diop, Dominique
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 41

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Book Description
In this paper, we utilize decomposition methods to document the extent and drivers of the performance gap in Malawi between firms with a female owner and firms with a male owner. We find that, on average, male-owned businesses in Malawi earn profits more than double (120%) those of female-owned businesses. We use Kitagawa-Oaxaca-Blinder (KOB) mean-decomposition techniques and recentered influence function (RIF) regressions applied along the earnings distribution, coupled with data from a novel multi-topic household survey rich in details about entrepreneurship, to identify what proportion of the gender gap in business profits can be attributed to: (i) differences in average characteristics of profit-generating factors (composition effect) and (ii) gender differences in the returns to these factors (structure effect). We find that 59.8% of the mean gender gap is explained by gender differences in the levels of observable attributes, with the remaining 40.2% attributable to the lower returns to observable attributes obtained by female owners, i.e., female structural disadvantage. The composition effect is primarily driven by female owners’ role as the primary caregiver in most households and a lack of capital. The female structural disadvantage can largely be attributed to female owners’ heightened perception of sexual hostility in the work environment and non-cognitive skills related to entrepreneurship (perseverance in challenging tasks and environments, optimism, and passion for work). When looking along the distribution, capital stock appears to be a primary driver of the composition effect except in the bottom quintile of firms. In contrast, caregiving responsibilities are a driver of the composition effect in the bottom three quintiles only. Differences in the returns to capital appear to be a very significant driver of the female structural disadvantage in the bottom quintile.

Explaining the gender gap in profits among entrepreneurs in Malawi

Explaining the gender gap in profits among entrepreneurs in Malawi PDF Author: Duval-Diop, Dominique
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 41

Get Book

Book Description
In this paper, we utilize decomposition methods to document the extent and drivers of the performance gap in Malawi between firms with a female owner and firms with a male owner. We find that, on average, male-owned businesses in Malawi earn profits more than double (120%) those of female-owned businesses. We use Kitagawa-Oaxaca-Blinder (KOB) mean-decomposition techniques and recentered influence function (RIF) regressions applied along the earnings distribution, coupled with data from a novel multi-topic household survey rich in details about entrepreneurship, to identify what proportion of the gender gap in business profits can be attributed to: (i) differences in average characteristics of profit-generating factors (composition effect) and (ii) gender differences in the returns to these factors (structure effect). We find that 59.8% of the mean gender gap is explained by gender differences in the levels of observable attributes, with the remaining 40.2% attributable to the lower returns to observable attributes obtained by female owners, i.e., female structural disadvantage. The composition effect is primarily driven by female owners’ role as the primary caregiver in most households and a lack of capital. The female structural disadvantage can largely be attributed to female owners’ heightened perception of sexual hostility in the work environment and non-cognitive skills related to entrepreneurship (perseverance in challenging tasks and environments, optimism, and passion for work). When looking along the distribution, capital stock appears to be a primary driver of the composition effect except in the bottom quintile of firms. In contrast, caregiving responsibilities are a driver of the composition effect in the bottom three quintiles only. Differences in the returns to capital appear to be a very significant driver of the female structural disadvantage in the bottom quintile.

Explaining the Gender Gap in Profits Among Entrepreneurs in Malawi

Explaining the Gender Gap in Profits Among Entrepreneurs in Malawi PDF Author: Dominique Duval-Diop
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description


Enterprising Women

Enterprising Women PDF Author: Mary Hallward-Driemeier
Publisher: World Bank Publications
ISBN: 0821398091
Category : Business & Economics
Languages : en
Pages : 307

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Book Description
This book brings together new household and enterprise data from 41 countries in Sub-Saharan Africa to inform policy makers and practitioners on ways to expand women entrepreneurs’ economic opportunities. Sub-Saharan Africa boasts the highest share of women entrepreneurs, but they are disproportionately concentrated among the self-employed rather than employers. Relative to men, women are pursuing lower opportunity activities, with their enterprises more likely to be smaller, informal, and in low value-added lines of business. The challenge in expanding opportunities is not helping more women become entrepreneurs but enabling them to shift to higher return activities. A central question addressed in the book is what explains the gender sorting in the types of enterprises that women and men run? The analysis shows that many Sub-Saharan countries present a challenging environment for women. Four key areas of the agenda for expanding women’s economic opportunities in Africa are analyzed: strengthening women’s property rights and their ability to control assets; improving women’s access to finance; building human capital in business skills and networks; and strengthening women’s voices in business environment reform. These areas are important both because they have wide gender gaps and because they help explain gender differences in entrepreneurial activities. It is particularly striking that while gender gaps in education tend to close with higher incomes, gaps in women’s property rights and in women’s participation in reform processes do not. As simply raising a country’s income is unlikely to be sufficient to give women equal ability to control assets or have greater voice, more proactive steps will be needed. Practical guidelines to move the agenda forward are discussed for each of these key areas.

Gender Issues in Entrepreneurship

Gender Issues in Entrepreneurship PDF Author: Maria Minniti
Publisher: Now Publishers Inc
ISBN: 1601983026
Category : Business & Economics
Languages : en
Pages : 143

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Book Description
Entrepreneurship is a human universal. All over the world, and throughout history, people have created businesses. Yet, although women make up more than 50 percent of the world population, they own and manage significantly fewer businesses than men. Venture types and management styles vary across genders as well. Women entrepreneurship presents several distinctive characteristics that differentiate it from men entrepreneurship. But variations exist also across women entrepreneurs in various countries, and between women who are involved in entrepreneurship and those who are not. Overall, the explanation for the behavior of women entrepreneurs and its distinctiveness is complex and multifaceted. Evidence to date suggests that reasons contributing to explaining these differences include demographic and socio-economic variables, subjective perceptions, and cultural factors and institutions, and that such differences have significant implications at the macro-economic level. Studying female entrepreneurship allows researchers to ask questions that shed light on the linkages between entrepreneurship and wealth creation, employment choices and cognition, human capital accumulation and labor market structure, employment choice and family dynamics, business creation and peace, and many others. From a scientific point of view, the study of female entrepreneurship as a distinct area of inquiry informs us not only about women behavior, but also about entrepreneurial and human behaviors in general. All over the world, female entrepreneurship has become an important component of academic and policy conversations around entrepreneurship. Still, there is much we don't yet understand. Taking stock of what has been learned so far, identifying the main gaps, and encourage scholars to push the frontier of knowledge in this area further are the goals of this work.

Closing Gender Gaps in India: Does Increasing Womens’ Access to Finance Help?

Closing Gender Gaps in India: Does Increasing Womens’ Access to Finance Help? PDF Author: Purva Khera
Publisher: International Monetary Fund
ISBN: 1484379403
Category : Business & Economics
Languages : en
Pages : 43

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Book Description
Gender gaps in womens’ economic opportunities—labor market and entrepreneurship—have remained high in India. Lack of adequate collateral limits women entrepreneurs’ ability to access formal finance, leaving them to rely on informal sources, constraining their growth. A small-open economy DSGE model is built to investigate the long-run macroeconomic impacts from closing gender gaps in financial access. Results suggest that an increase in women entrepreneurs access to formal credit results in higher female entrepreneurship and employment, which boosts India’s output by 1.6 percent. However, regulations and gender-specific constraints in the labor market limit potential gains as females’ access to quality jobs in the formal sector remains restricted. The paper shows that the factors influencing the number of females are different from those influencing the share of females in formal economic activity. Combining gender-targeted financial inclusion policies with policies that lower constraints on formal sector employment could boost India’s output by 6.8 percent.

Women and Trade

Women and Trade PDF Author: World Bank;World Trade Organization
Publisher: World Bank Publications
ISBN: 1464815569
Category : Business & Economics
Languages : en
Pages : 270

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Book Description
Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society. It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is essential to assess the potential impact of trade policy on both women and men and to develop appropriate, evidence-based policies to ensure that trade helps to enhance opportunities for all. Research on gender equality and trade has been constrained by limited data and a lack of understanding of the connections among the economic roles that women play as workers, consumers, and decision makers. Building on new analyses and new sex-disaggregated data, Women and Trade: The Role of Trade in Promoting Gender Equality aims to advance the understanding of the relationship between trade and gender equality and to identify a series of opportunities through which trade can improve the lives of women.

Gender Equality and Inclusive Growth

Gender Equality and Inclusive Growth PDF Author: Raquel Fernández
Publisher: International Monetary Fund
ISBN: 1513571168
Category : Social Science
Languages : en
Pages : 50

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Book Description
This paper considers various dimensions and sources of gender inequality and presents policies and best practices to address these. With women accounting for fifty percent of the global population, inclusive growth can only be achieved if it promotes gender equality. Despite recent progress, gender gaps remain across all stages of life, including before birth, and negatively impact health, education, and economic outcomes for women. The roadmap to gender equality has to rely on legal framework reforms, policies to promote equal access, and efforts to tackle entrenched social norms. These need to be set in the context of arising new trends such as digitalization, climate change, as well as shocks such as pandemics.

Women, Business and the Law 2018

Women, Business and the Law 2018 PDF Author: World Bank Group
Publisher: World Bank Publications
ISBN: 1464812535
Category : Law
Languages : en
Pages : 584

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Book Description
How can governments ensure that women have the same employment and entrepreneurship opportunities as men? One important step is to level the legal playing field so that the rules for operating in the worlds of work and business apply equally regardless of gender. Women, Business and the Law 2018, the fifth edition in a series, examines laws affecting women’s economic inclusion in 189 economies worldwide. It tracks progress that has been made over the past two years while identifying opportunities for reform to ensure economic empowerment for all. The report updates all indicators as of June 1, 2017 and explores new areas of research, including financial inclusion.

Women Entrepreneurs in SMEs

Women Entrepreneurs in SMEs PDF Author: Organisation for Economic Co-operation and Development
Publisher: Org. for Economic Cooperation & Development
ISBN:
Category : Business & Economics
Languages : en
Pages : 276

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Book Description
This conference proceedings shows how women-owned SMEs can seize the opportunities offered by globalisation, ICTs, changes in firm organisation, the increasing importance of the service sector, and other current developments.

OECD Studies on SMEs and Entrepreneurship Entrepreneurship Policies through a Gender Lens

OECD Studies on SMEs and Entrepreneurship Entrepreneurship Policies through a Gender Lens PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264507558
Category :
Languages : en
Pages : 165

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Book Description
This publication examines how to strengthen the scope and effectiveness of entrepreneurship policies for women. It examines both dedicated measures for women and ensuring that mainstream policies for all entrepreneurs are appropriate for women. Evidence is offered on the gender gap in entrepreneurship and its causes.