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The gender gap in entrepreneurship – The role of peer effects

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  • Markussen, Simen
  • Røed, Knut

Abstract

In virtually all industrialized countries, women are underrepresented in entrepreneurship, and the gender gap exhibits a remarkable persistence. We examine one particular source of persistence, namely the prevalence of gendered peer influences. We study how early career entrepreneurship is affected by existing entrepreneurship among neighbors, family members, and recent schoolmates. Based on an instrumental variables strategy, we identify strong and heavily gendered peer effects. While men are more influenced by other men, women are more influenced by other women. We estimate that differences between male and female peer groups explain approximately half of the gender gap in early career entrepreneurship.

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  • Markussen, Simen & Røed, Knut, 2017. "The gender gap in entrepreneurship – The role of peer effects," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 356-373.
    • Handle: RePEc:eee:jeborg:v:134:y:2017:i:c:p:356-373
    DOI: 10.1016/j.jebo.2016.12.013
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    Cited by:

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    2. Jafari-Sadeghi, Vahid & Sukumar, Arun & Pagán-Castaño, Esther & Dana, Léo-Paul, 2021. "What drives women towards domestic vs international business venturing? An empirical analysis in emerging markets," Journal of Business Research, Elsevier, vol. 134(C), pages 647-660.
    3. Gil Avnimelech & Yaron Zelekha, 2023. "Religion and the gender gap in entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 629-665, June.
    4. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    5. Bellido, Héctor, 2020. "Análisis internacional de las decisiones emprendedoras: aspectos económicos, emocionales, saludables y familiares [International analysis of entrepreneurial decisions: economic, emotional, healthy ," MPRA Paper 104487, University Library of Munich, Germany.
    6. Samir Marwan Hammami & Tareq Muhammad Alhousary & Ahmad Taha Kahwaji & Syed Ahsan Jamil, 2022. "The status quo of omani female entrepreneurs: a story of multidimensional success factors," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2063-2089, August.
    7. Jones, Todd R. & Kofoed, Michael S., 2020. "Do peers influence occupational preferences? Evidence from randomly-assigned peer groups at West Point," Journal of Public Economics, Elsevier, vol. 184(C).
    8. Ribes-Giner, G. & Moya-Clemente, I. & Cervelló-Royo, R. & Perello-Marin, M.R., 2018. "Domestic economic and social conditions empowering female entrepreneurship," Journal of Business Research, Elsevier, vol. 89(C), pages 182-189.
    9. Zuzana Brixiová & Thierry Kangoye, 2019. "Networks, start-up capital and women's entrepreneurial performance in Africa: Evidence from Eswatini," SALDRU Working Papers 257, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Einiö, Elias & Feng, Josh & Jaravel, Xavier, 2023. "Social Push and the Direction of Innovation," Working Papers 160, VATT Institute for Economic Research.
    11. Pau Sendra-Pons & Sara Belarbi-Muñoz & Dolores Garzón & Alicia Mas-Tur, 2022. "Cross-country differences in drivers of female necessity entrepreneurship," Service Business, Springer;Pan-Pacific Business Association, vol. 16(4), pages 971-989, December.
    12. Robert Gillanders & Roisin Lyons & Lisa van der Werff, 2021. "Social sexual behaviour and co-worker trust in start-up enterprises," Small Business Economics, Springer, vol. 57(2), pages 765-780, August.
    13. Mohd Yasir Arafat & Imran Saleem & Amit Kumar Dwivedi & Adil Khan, 2020. "Determinants of agricultural entrepreneurship: a GEM data based study," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 345-370, March.
    14. Berlinski, Samuel & Ramos, Alejandra, 2020. "Peer effects in the decision to apply for a professional excellence award," Labour Economics, Elsevier, vol. 67(C).
    15. Schmidt, Claudia & Goetz, Stephan J. & Tian, Zheng, 2021. "Female farmers in the United States: Research needs and policy questions," Food Policy, Elsevier, vol. 101(C).
    16. Alessandro Muscio & Giovanna Vallanti, 2022. "The gender gap in Ph.D. entrepreneurship: How do students perceive the academic environment?," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-15, April.
    17. Ewens, Michael, 2022. "Race and Gender in Entrepreneurial Finance," SocArXiv djf8z, Center for Open Science.
    18. Zandberg, Jonathan, 2021. "Family comes first: Reproductive health and the gender gap in entrepreneurship," Journal of Financial Economics, Elsevier, vol. 140(3), pages 838-864.

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    More about this item

    Keywords

    Early career entrepreneurship; Peer effects; Gender gap; Instrumental variables;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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