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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt8rv5w116.
Date of creation: 01 Feb 2009
Date of revision:
Female entrepreneurship; business outcomes;
Other versions of this item:
- Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
- 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).
- 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.
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Parker,Simon C., 2006.
"The Economics of Self-Employment and Entrepreneurship,"
Cambridge University Press, number 9780521030632, December.
- Parker,Simon C., 2004. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521828130, December.
- Brian Headd, 1999. "The Characteristics of Business Owners Database, 1992," Working Papers 99-8, Center for Economic Studies, U.S. Census Bureau.
- F. L. Jones, 1983. "On Decomposing the Wage Gap: A Critical Comment on Blinder's Method," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 126-130.
- Cliff, Jennifer E., 1998. "Does one size fit all? exploring the relationship between attitudes towards growth, gender, and business size," Journal of Business Venturing, Elsevier, vol. 13(6), pages 523-542, November.
- Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
- Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, January.
- Michael Hout & Harvey Rosen, 2000.
"Self-Employment, Family Background, and Race,"
Journal of Human Resources,
University of Wisconsin Press, vol. 35(4), pages 670-692.
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- Bernard F. Lentz & David N. Laband, 1990. "Entrepreneurial Success and Occupational Inheritance among Proprietors," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 563-79, August.
- Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May.
- Astebro, Thomas & Bernhardt, Irwin, 2003. "Start-up financing, owner characteristics, and survival," Journal of Economics and Business, Elsevier, vol. 55(4), pages 303-319.
- David Blanchflower & A Oswald, 1993. "Entrepreneurship," CEP Discussion Papers dp0134, Centre for Economic Performance, LSE.
- Carter, Nancy M. & Gartner, William B. & Shaver, Kelly G. & Gatewood, Elizabeth J., 2003. "The career reasons of nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(1), pages 13-39, January.
- Henning Lohmann, 2001. "Self-employed or employee, full-time or part-time? Gender differences in the determinants and conditions for self-employment in Europe and the US," MZES Working Papers 38, MZES.
- Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 817-829, October.
- Timothy Bates & Robert McGuckin, 1990. "The Characteristics of Business Owners Data Base," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 736-751.
- BodenJR., Richard J. & Nucci, Alfred R., 2000. "On the survival prospects of men's and women's new business ventures," Journal of Business Venturing, Elsevier, vol. 15(4), pages 347-362, July.
- Boden, Richard Jr., 1996. "Gender and self-employment selection: An empirical assessment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(6), pages 671-682.
- Rosa, Peter & Carter, Sara & Hamilton, Daphne, 1996. " Gender as a Determinant of Small Business Performance: Insights from a British Study," Small Business Economics, Springer, vol. 8(6), pages 463-78, December.
- Caliendo, Marco & Kritikos, Alexander S., 2011. "Searching for the Entrepreneurial Personality: New Evidence and Avenues for Further Research," IZA Discussion Papers 5790, Institute for the Study of Labor (IZA).
- Alonso-Almeida, María del Mar, 2013. "Influence of gender and financing on tourist company growth," Journal of Business Research, Elsevier, vol. 66(5), pages 621-631.
- Susan Coleman & Alicia Robb, 2009. "A comparison of new firm financing by gender: evidence from the Kauffman Firm Survey data," Small Business Economics, Springer, vol. 33(4), pages 397-411, December.
- Gianni Romani & Miguel Atienza & Ernesto Amorâˆšâ‰¥s, 2011. "Financing needs of nascent entrepreneurs in Chile: does gender matter?," ERSA conference papers ersa10p1425, European Regional Science Association.
- May-Strobl, Eva, 2010. "Nachhaltigkeit und Erfolg von Gründungen aus der Arbeitslosigkeit: Ergebnisse einer Nachbefragung bei aus den Gründungs- und Begleitzirkeln der G.I.B. hervorgegangenen Gründungen," IfM-Materialien 196, Institut für Mittelstandsforschung (IfM) Bonn.
- Toledo-López, Arcelia & Díaz-Pichardo, René & Jiménez-Castañeda, Julio C. & Sánchez-Medina, Patricia S., 2012. "Defining success in subsistence businesses," Journal of Business Research, Elsevier, vol. 65(12), pages 1658-1664.
- Francesca Maria Cesaroni & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Female firms and banks’ lending behaviour: what happened during the great recession?," Questioni di Economia e Finanza (Occasional Papers) 177, Bank of Italy, Economic Research and International Relations Area.
- Reyes Aterido & Mary Hallward-Driemeier, 2011. "Whose business is it anyway?," Small Business Economics, Springer, vol. 37(4), pages 443-464, November.
- Hiroyuki Okamuro & Kenta Ikeuchi, 2012. "Work-Life Balance and Gender Differences in Self-Employment Income during the Start-up Stage in Japan," Global COE Hi-Stat Discussion Paper Series gd12-260, Institute of Economic Research, Hitotsubashi University.
- repec:rdg:wpaper:em-dp2013-01 is not listed on IDEAS
- Angela Hung & Joanne Yoong & Elizabeth Brown, 2012. "Empowering Women Through Financial Awareness and Education," OECD Working Papers on Finance, Insurance and Private Pensions 14, OECD Publishing.
- Susan Coleman & Alicia M. Robb, 2011. "Financing Strategies of New Technology-based Firms," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 01-18, August.
- Cole, Rebel, 2011. "How do firms choose legal form of organization?," MPRA Paper 32591, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff).
If references are entirely missing, you can add them using this form.