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, and business human capital acquired through prior work experience in a similar business and prior work experience in family business. We also find some evidence that female-owned businesses work fewer hours and may have different preferences for the goals of their business.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3718.
Length: 52 pages
Date of creation: Sep 2008
Date of revision:
Publication status: published in: Small Business Economics, 2009, 33 (4), 375-395
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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.
- 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.
- Fairlie, Robert & Robb, Alicia M., 2009. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Santa Cruz Department of Economics, Working Paper Series qt8rv5w116, Department of Economics, UC Santa Cruz.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-13 (All new papers)
- NEP-BEC-2008-10-13 (Business Economics)
- NEP-ENT-2008-10-13 (Entrepreneurship)
- NEP-LAB-2008-10-13 (Labour Economics)
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