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Does Gender Matter for Firm Performance? Evidence from Eastern Europe and Central Asia

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  • Sabarwal, Shwetlena

    ()
    (World Bank)

  • Terrell, Katherine

    (University of Michigan)

Abstract

Using 2005 firm level data for 26 ECA countries, this paper estimates performance gaps between male- and female-owned businesses, while controlling for their location by industry and country. We find that female entrepreneurs have significantly smaller scale of operations (as measured by sales revenues) and are less efficient in terms of Total Factor Productivity (TFP), although this difference is very small. However, they generate the same amount of profit per unit of revenue as men. We find that while both male and female entrepreneurs in ECA are sub-optimally small, women's returns to scale are significantly larger than men's implying that they would gain more from increasing their scale. We argue that the main reasons for the sub-optimal size of female-owned firms are that they are both capital constrained and concentrated in industries with small firms.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3758.

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Length: 53 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3758

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Keywords: entrepreneurship; finance; gender; Eastern Europe; Central Asia;

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Citations

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Cited by:
  1. Rijkers, Bob & Costa, Rita, 2012. "Gender and rural non-farm entrepreneurship," Policy Research Working Paper Series 6066, The World Bank.
  2. World Bank, 2011. "Emerging Europe and Central Asia - Opportunities for men and women," World Bank Other Operational Studies 2820, The World Bank.
  3. Sarosh Sattar, 2011. "Opportunities for Men and Women : Emerging Europe and Central Asia," World Bank Other Operational Studies 2800, The World Bank.
  4. Reyes Aterido & Mary Hallward-Driemeier, 2011. "Whose business is it anyway?," Small Business Economics, Springer, Springer, vol. 37(4), pages 443-464, November.
  5. Claudia Trentini & Malinka Koparanova, 2013. "Corruption and entrepreneurship: does gender matter?," ECE Discussion Papers Series, UNECE 2013_1, UNECE.
  6. Claudia Piras & Andrea Filippo Presbitero & Roberta Rabellotti, 2013. "Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit," Mo.Fi.R. Working Papers, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences 90, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  7. Nigar Hashimzade & Yulia Rodionova, 2013. "Gender Bias in Access to Finance, Occupational Choice, and Business Performance," Economics & Management Discussion Papers, Henley Business School, Reading University em-dp2013-01, Henley Business School, Reading University.

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