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The gender gap in entrepreneurship – The role of peer effects

Author

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  • Markussen, Simen
  • Røed, Knut

Abstract

In virtually all industrialized countries, women are underrepresented in entrepreneurship, and the gender gap exhibits a remarkable persistence. We examine one particular source of persistence, namely the prevalence of gendered peer influences. We study how early career entrepreneurship is affected by existing entrepreneurship among neighbors, family members, and recent schoolmates. Based on an instrumental variables strategy, we identify strong and heavily gendered peer effects. While men are more influenced by other men, women are more influenced by other women. We estimate that differences between male and female peer groups explain approximately half of the gender gap in early career entrepreneurship.

Suggested Citation

  • Markussen, Simen & Røed, Knut, 2017. "The gender gap in entrepreneurship – The role of peer effects," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 356-373.
  • Handle: RePEc:eee:jeborg:v:134:y:2017:i:c:p:356-373
    DOI: 10.1016/j.jebo.2016.12.013
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    References listed on IDEAS

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    More about this item

    Keywords

    Early career entrepreneurship; Peer effects; Gender gap; Instrumental variables;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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