Mind The (Profit) Gap: Why Are Female Enterprise Owners Earning Less Than Men?
AEA Papers and Proceedings
vol. 108,
May 2018
(pp. 252-55)
Abstract
We explore potential causes for the well-documented profit gap between male- and female-owned microenterprises in low-income countries. We use rich data from an ongoing field project in Ghana's garment making sector, and our study sample consists of all garment making firms in a midsize district capital. Even within the same industry, male-owned firms earn nearly twice as much profit as female-owned firms. Furthermore, we find the large and persistent gender difference in profits cannot be explained by our extensive firm- and owner-level characteristics. We conclude that factors outside of individual firm or firm-owner characteristics are likely to be at play.Citation
Hardy, Morgan, and Gisella Kagy. 2018. "Mind The (Profit) Gap: Why Are Female Enterprise Owners Earning Less Than Men?" AEA Papers and Proceedings, 108: 252-55. DOI: 10.1257/pandp.20181025Additional Materials
JEL Classification
- J16 Economics of Gender; Non-labor Discrimination
- L25 Firm Performance: Size, Diversification, and Scope
- L26 Entrepreneurship
- L67 Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration