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Gender Discrimination, Entrepreneurial Talent and Self-Employment

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  • Luisa Rosti

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  • Francesco Chelli

Abstract

The trend of female self-employment in Italy is stable, with a low level of participation which confirms the prediction of economic theory on discrimination. We contend that gender discrimination alters the distribution of entrepreneurial talent between employees and self-employed workers. This gives rise to the prediction that the self-employed women are less likely to survive when self-employed than men because the lesser entrepreneurial talent of women will increase their risk of failure. Applying Markovian analysis to ISTAT’s labor market transition matrices we verify this prediction: Many women try to set up on their own, but they fail to remain self-employed both because their lesser entrepreneurial talent and because they try to become entrepreneurs without any previous experience of work. ‘If you think you’re so discriminated against, why don’t you set up on your own?’ Copyright Springer 2005

Suggested Citation

  • Luisa Rosti & Francesco Chelli, 2005. "Gender Discrimination, Entrepreneurial Talent and Self-Employment," Small Business Economics, Springer, vol. 24(2), pages 131-142, March.
  • Handle: RePEc:kap:sbusec:v:24:y:2005:i:2:p:131-142
    DOI: 10.1007/s11187-003-3804-5
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    References listed on IDEAS

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    1. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 385-409, June.
    2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
    3. Holmes, Thomas J & Schmitz, James A, Jr, 1990. "A Theory of Entrepreneurship and Its Application to the Study of Business Transfers," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 265-294, April.
    4. Moore, Robert L, 1983. "Employer Discrimination: Evidence from Self-Employed Workers," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 496-501, August.
    5. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
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    Cited by:

    1. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo, vol. 61(1), pages 202-238.
    2. Dimitris Christelis & Raquel Fonseca, 2015. "Labor Market Policies and Self-Employment Transitions of Older Workers," Cahiers de recherche 1516, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    3. Xuemei Xie & Jiuchang Lv, 2016. "Social networks of female tech-entrepreneurs and new venture performance: the moderating effects of entrepreneurial alertness and gender discrimination," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 963-983, December.
    4. Marcus T. Wolfe & Pankaj C. Patel, 2017. "Instant gratification: temporal discounting and self-employment," Small Business Economics, Springer, vol. 48(4), pages 861-882, April.
    5. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    6. repec:spr:elcore:v:17:y:2017:i:4:d:10.1007_s10660-016-9247-2 is not listed on IDEAS
    7. Kim, GiSeung, 2007. "The analysis of self-employment levels over the life-cycle," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(3), pages 397-410, July.
    8. Michael Stuetzer & Martin Obschonka & Eva Schmitt-Rodermund, 2013. "Balanced skills among nascent entrepreneurs," Small Business Economics, Springer, vol. 41(1), pages 93-114, June.
    9. Marcus T. Wolfe & Pankaj C. Patel, 2016. "Grit and self-employment: a multi-country study," Small Business Economics, Springer, vol. 47(4), pages 853-874, December.
    10. Philipp Koellinger & Maria Minniti & Christian Schade, 2008. "Seeing the World with Different Eyes," Tinbergen Institute Discussion Papers 08-035/3, Tinbergen Institute, revised 11 Mar 2011.
    11. Kameliia Petrova, 2012. "Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 39(2), pages 473-493, September.
    12. Angela Cipollone & Carlo D'Ippoliti, 2009. "Women's Employment: Beyond Individual Characteristics vs. Contextual Factors Explanations," Working Papers CELEG 0901, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    13. Dongyu Chen & Xiaolin Li & Fujun Lai, 0. "Gender discrimination in online peer-to-peer credit lending: evidence from a lending platform in China," Electronic Commerce Research, Springer, vol. 0, pages 1-31.

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