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The Productivity Gaps of Female-Owned Firms: Evidence from Ethiopian Census Data

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  • Dennis Essers
  • Kelbesa Megersa
  • Marco Sanfilippo

Abstract

This paper provides new empirical evidence on the relative productivity disadvantage of female-owned firms compared with male-owned firms in a developing country setting. We rely on a large panel of manufacturing firms based on an annual census run by the Central Statistical Agency of Ethiopia. Our preferred estimation shows a 12% difference in levels of total factor productivity between female- and male-owned firms. Drawing on novel quantile approaches to formally compare productivity distributions, we also dig deeper into some of the potential mechanisms underlying this gender-based firm productivity gap. Our findings suggest that various forces are at work. Most female-owned firms seem to concentrate in certain less productive subsectors, and only very few succeed in standing out. Moreover, lower productivity of female-owned firms is shown to relate to a combination of observed firm characteristics and unobserved structural factors that varies according to a firm’s position in the overall productivity distribution.

Suggested Citation

  • Dennis Essers & Kelbesa Megersa & Marco Sanfilippo, 2021. "The Productivity Gaps of Female-Owned Firms: Evidence from Ethiopian Census Data," Economic Development and Cultural Change, University of Chicago Press, vol. 69(2), pages 645-683.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/703101
    DOI: 10.1086/703101
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    Cited by:

    1. Islam, Asif M. & Amin, Mohammad, 2023. "The gender labor productivity gap across informal firms," World Development, Elsevier, vol. 167(C).
    2. Holden, Stein T. & Tilahun, Mesfin, 2021. "Mobile phones, leadership and gender in rural business groups," World Development Perspectives, Elsevier, vol. 24(C).

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