Gender differences in business performance: evidence from the Characteristics of Business Owners survey
AbstractUsing confidential microdata from the U.S. Census Bureau, we investigate the performance of female-owned businesses, making comparisons to male-owned businesses. Using regression estimates and a decomposition technique, we explore the role that human capital, especially through prior work experience, and financial capital play in contributing to why female-owned businesses have lower survival rates, profits, employment and sales. We find that female-owned businesses are less successful than male-owned businesses because they have less startup capital, less business human capital acquired through prior work experience in a similar business, and less prior work experience in a family business. We also find some evidence that female business owners work fewer hours and may have different preferences for the goals of their businesses, which may have implications for business outcomes.
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Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 33 (2009)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=100338
Business outcomes; Female entrepreneurship; J15; L26;
Other versions of this item:
- Robert Fairlie & Alicia Robb, 2008. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Working Papers 08-39, Center for Economic Studies, U.S. Census Bureau.
- Fairlie, Robert & Robb, Alicia M., 2009. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Santa Cruz Department of Economics, Working Paper Series qt8rv5w116, Department of Economics, UC Santa Cruz.
- Fairlie, Robert W. & Robb, Alicia, 2008. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," IZA Discussion Papers 3718, Institute for the Study of Labor (IZA).
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
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