Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit
Standards measures of female ownership and management of firms included in the World Bank Enterprise Survey do not support the existence of a gender gap in access to finance in the Latin American and Caribbean region. Nonetheless, more precise measures show that women-led businesses are more likely to be financially constrained than other comparable firms. The evidence presented herein suggests that this gender gap may be driven by taste-based discrimination. This paper exploits a rich dataset that provides detailed information about female ownership and management in firms, allowing for further understanding of gender gaps in access to finance.
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