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What explains big gender disparities in India ? local industrial structures and female entrepreneurship

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  • Ghani, Ejaz
  • Kerr, William R.
  • O'Connell, Stephen D.

Abstract

Despite rapid economic growth, gender disparities in women's economic participation have remained deep and persistent in India. What explains these huge gender disparities? Is it poor infrastructure, limited education, and gender composition of the labor force and industries? Or is it deficiencies in social and business networks and a low share of incumbent female entrepreneurs?This paper analyzes the spatial determinants of female entrepreneurship in India in the manufacturing and services sectors. Good infrastructure and education predict higher female entry shares. There are strong agglomeration economies in both manufacturing and services, where higher female ownership among incumbent businesses within a district-industry predicts a greater share of subsequent entrepreneurs will be female. Moreover, higher female ownership of local businesses in related industries (similar labor needs, input-output markets) predicts greater relative female entry rates. Gender networks thus clearly matter for women's economic participation. However, there is a need to develop a better understanding of how gender networks influence aggregate efficiency. There is no doubt that gender empowerment can be the escalator to realizing human potential and for creating a robust platform for growth and job creation.

Suggested Citation

  • Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2012. "What explains big gender disparities in India ? local industrial structures and female entrepreneurship," Policy Research Working Paper Series 6228, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6228
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    1. Ghani, Ejaz & Kerr, William & O'Connell, Stephen, 2013. "Promoting Women’s Economic Participation in India," World Bank - Economic Premise, The World Bank, issue 107, pages 1-6, February.
    2. Shiney Chakraborty & Priyanka Chatterjee, 2021. "Women Entrepreneurs in India: Where Do They Stand?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1069-1092, December.
    3. Kumar, Kaushalendra & Singh, Abhishek & James, K.S. & McDougal, Lotus & Raj, Anita, 2020. "Gender bias in hospitalization financing from borrowings, selling of assets, contribution from relatives or friends in India," Social Science & Medicine, Elsevier, vol. 260(C).
    4. Shruti Shuvam & Pratap C. Mohanty, 2023. "Necessity or Opportunity Driven: Gender Differentials and Structural Changes of Proprietorship in the Indian Unorganized Enterprises," Global Business Review, International Management Institute, vol. 24(2), pages 295-316, April.

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    Keywords

    Banks&Banking Reform; Housing&Human Habitats; Water and Industry; E-Business; Gender and Law;
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