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Entrepreneurs' gender and financial constraints: evidence from international data

Author

Listed:
  • Alexander Muravyev

    () (DIW - Berlin)

  • Dorothea Schaefer

    () (DIW - Berlin and Free University of Berlin)

  • Oleksandr Talavera

    () (Aberdeen Business School and Kyiv School of Economics)

Abstract

This paper studies gender discrimination against entrepreneurs by financial institutions. Based on the cross-country Business Environment and Enterprise Performance Survey (BEEPS) our analysis suggests that, compared to male-managed counterparts, female-managed firms are less likely to obtain a bank loan. In addition, we find that female entrepreneurs are charged higher interest rates when loan applications are approved. There is also some evidence that the gender differences in access to financing vanish with the level of financial development, which is consistent with the Becker-type discrimination. The results of our analysis are robust to a number of specification checks.

Suggested Citation

  • Alexander Muravyev & Dorothea Schaefer & Oleksandr Talavera, 2008. "Entrepreneurs' gender and financial constraints: evidence from international data," Discussion Papers 11, Kyiv School of Economics.
  • Handle: RePEc:kse:dpaper:11 Note: Forthcoming in Journal of Comparative Economics
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    Keywords

    Entrepreneurship; financial constraints; gender; discrimination;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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