What drives women out of entrepreneurship? The joint role of testosterone and culture
AbstractThe ratio of second to fourth digit (2D4D) has been shown to correlate negatively with entrepreneurial skills and financial success. We document that in a sample of entrepreneurs women have a lower 2D4D ratio than men, in sharp contrast with the features of the distribution in random samples. Exploiting variation across communities in indices correlated with women emancipation, we show that in regions where women are less emancipated their average DR is lower than that of men compared to regions with higher indices. This finding is consistent with the existence of gender related obstacles into entrepreneurship so that only women with well above average entrepreneurial skills find it attractive to self-select into entrepreneurship. This finding can rationalize three facts: a) fewer women than men are entrepreneurs; b) the proportion of women among entrepreneurs tends to be higher in countries with higher women emancipation; c) women who break the barrier into entrepreneurship seem to show more masculine traits. We also find that once women enter entrepreneurship, they are equally able than man to translate their ability into outcomes for the firm.
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Bibliographic InfoPaper provided by European University Institute in its series Economics Working Papers with number ECO2011/02.
Date of creation: 2011
Date of revision:
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Women emancipation; Entrepreneurial ability; Digit Ratio; Testosterone; Entrepreneurship;
Other versions of this item:
- Guiso, Luigi & Rustichini, Aldo, 2011. "What drives women out of entrepreneurship? The joint role of testosterone and culture," CEPR Discussion Papers 8204, C.E.P.R. Discussion Papers.
- Luigi Guiso & Aldo Rustichini, 2011. "What drives women out of entrepreneurship? The joint role of testosterone and culture," EIEF Working Papers Series 1102, Einaudi Institute for Economics and Finance (EIEF), revised Jan 2011.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-26 (All new papers)
- NEP-CBE-2011-03-26 (Cognitive & Behavioural Economics)
- NEP-ENT-2011-03-26 (Entrepreneurship)
- NEP-LTV-2011-03-26 (Unemployment, Inequality & Poverty)
- NEP-SOC-2011-03-26 (Social Norms & Social Capital)
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