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The labor productivity gap between female and male-managed firms in the formal private sector

Author

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  • Islam,Asif Mohammed
  • Gaddis,Isis
  • Palacios-Lopez,Amparo
  • Amin,Mohammad

Abstract

This study analyzes gender differences in labor productivity in the formal private sector, using data from 128 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among female- than male-managed firms. The analyses are based on female management, which is more strongly associated with labor productivity than female participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of female-managed firms relative to male-managed firms: fewer female- than male-managed firms protect themselves from crime and power outages, have their own websites, and are (co-) owned by foreigners. In addition, in the manufacturing sector, female-managed firms are less capitalized and have lower labor cost than male-managed firms.

Suggested Citation

  • Islam,Asif Mohammed & Gaddis,Isis & Palacios-Lopez,Amparo & Amin,Mohammad, 2018. "The labor productivity gap between female and male-managed firms in the formal private sector," Policy Research Working Paper Series 8445, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8445
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    Cited by:

    1. Mohammad Amin & Cedric Okou, 2020. "Casting a shadow: Productivity of formal firms and informality," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1610-1630, November.
    2. Mohammad Amin & Yew Chong Soh, 2022. "Financial constraints and the impact of corruption on employment growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 612-635, April.

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