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Gender gap in self‐employment: The role of risk attitudes

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  • Iryna Hayduk
  • Donald R. Williams

Abstract

This paper examines the link between the willingness to take risk and the gender gap in self‐employment in the transition economy, where for decades entrepreneurship was considered a crime. Using rich data on risk preferences and entrepreneurial activities, we show that male–female risk tolerance differential is the main determinant of the gender gap in self‐employment in Ukraine. The decomposition results indicate that up to 38% of the gap can be attributed to this factor. Robustness tests support the validity of the baseline findings by suggesting that the results are not confounded by such factors as being unemployed before starting a current job, having a self‐employed household member, or living in a relatively wealthy household before transitioning to self‐employment.

Suggested Citation

  • Iryna Hayduk & Donald R. Williams, 2019. "Gender gap in self‐employment: The role of risk attitudes," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(3), pages 673-698, July.
    • Handle: RePEc:wly:ectrin:v:27:y:2019:i:3:p:673-698
    DOI: 10.1111/ecot.12209
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    References listed on IDEAS

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    1. Jorge Martinez-Vazquez & James Alm (ed.), 2003. "Public Finance in Developing and Transitional Countries," Books, Edward Elgar Publishing, number 2595.
    2. Cuberes David & Teignier Marc, 2018. "Macroeconomic costs of gender gaps in a model with entrepreneurship and household production," The B.E. Journal of Macroeconomics, De Gruyter, vol. 18(1), pages 1-15, January.
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    Cited by:

    1. Belev, Sergei & Vekerle, Konstantin & Evdokimova, Anastasiia, 2021. "The difference in tax evasion amount among various taxpayers’ groups in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 66-84.

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