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Female Entrepreneurship, Agglomeration, and a New Spatial Mismatch

Author

Listed:
  • Stuart S. Rosenthal

    (Syracuse University)

  • William C. Strange

    (University of Toronto)

Abstract

Female entrepreneurs may be less networked than their male counterparts and so derive less benefit from agglomeration. They may also have greater domestic burdens and therefore have higher commuting costs. This paper develops a theoretical model showing that either of these forces can lead to the segregation of male- and female-owned businesses, with female entrepreneurs choosing locations farther from agglomerations and commuting shorter distances. Empirical analysis is consistent with these predictions. Female-owned businesses are segregated, often to a degree similar to black-white residential segregation. Female-owned enterprises are less exposed to agglomeration, with 10% to 20% less own-industry employment nearby. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Stuart S. Rosenthal & William C. Strange, 2012. "Female Entrepreneurship, Agglomeration, and a New Spatial Mismatch," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 764-788, August.
    • Handle: RePEc:tpr:restat:v:94:y:2012:i:3:p:764-788
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    More about this item

    Keywords

    agglomeration; female entrepreneurship; spatial mismatch;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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