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Bridging The Gender Gap In Entrepreneurship: An Empirical Analysis

Author

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  • ELVIN AFANDI

    (Islamic Corporation for the Development of the Private Sector, Jeddah 21514, Saudi Arabia)

  • MAJID KERMANI

    (Islamic Corporation for the Development of the Private Sector, Jeddah 21514, Saudi Arabia)

Abstract

There is no gender difference between success in establishing a business once both males and females have the same preference to self-employment and attempts towards establishing a new business. However, the gender gap tends to be huge when it comes to individual preferences and attempts to start up an entrepreneurial activity. In this study, we empirically estimate the role of inequality in individual and country attributes between man and woman in the bridging the gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions, we found that differences in both individual as well as country characteristics largely favor males, while the former play greater role in explaining the gender gap. Empirical results also show differences in return to measured characteristics favor males. Nevertheless, a portion of gender gap that is unexplained by the differences in these characteristics and their coefficients (or return) could still indicate gender discrimination.

Suggested Citation

  • Elvin Afandi & Majid Kermani, 2015. "Bridging The Gender Gap In Entrepreneurship: An Empirical Analysis," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-22.
    • Handle: RePEc:wsi:jdexxx:v:20:y:2015:i:02:n:s1084946715500089
    DOI: 10.1142/S1084946715500089
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    References listed on IDEAS

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    1. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    2. Elena Nikolova & Dora Simroth, 2013. "Does cultural diversity help or hinder entrepreneurs? Evidence from eastern Europe and central Asia," Working Papers 158, European Bank for Reconstruction and Development, Office of the Chief Economist.
    3. Estrin, Saul & Mickiewicz, Tomasz, 2009. "Do Institutions Have a Greater Effect on Female Entrepreneurs?," IZA Discussion Papers 4577, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Igor Serpa Moraes & Roque Pinto de Camargo Neto & Vivian S. Queiroz Orellana & Gabrielito Rauter Menezes, 2020. "Entrepreneurship in Brazil: A Worthy Endeavor?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 1-98, July.
    2. Iuliia S. Pinkovetskaia Tatiana V. Gromova Irina N. Nikitina, 2020. "Assessment of Women’s Early-stage Entrepreneurial Activity in 2018," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 35-49, May.
    3. Elvin Afandi & Majid Kermani & Fuad Mammadov, 2017. "Social capital and entrepreneurial process," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 685-716, September.
    4. Kevin Banning* & Ravi Chinta, 2019. "Attitudinal and Structural Determinants of Entrepreneurial Intentions of Women," Business, Management and Economics Research, Academic Research Publishing Group, vol. 5(2), pages 26-32, 02-2019.

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    More about this item

    Keywords

    Latent entrepreneurship; nascent entrepreneurship; gender gap; personality traits; decomposition; J16; L26; M13;
    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
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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