Time to share the load: gender differences in household responsibilities and business profitability

Irani Arraiz

Small Business Economics, 2018, vol. 51, issue 1, No 3, 57-84

Abstract: Abstract This paper uses data from 2408 micro and small businesses in Ecuador to study business profit differentials by gender. The results point to unpaid work—time devoted to household chores, child care, and care for the elderly—as the largest single factor explaining 33% of the difference in profits observed between male- and female-run businesses. When comparing male and female business owners with similar business and personal characteristics, the difference in business profits disappears. The results point to initial endowments, rather than returns on those endowments, as the reason why female-run businesses are less profitable. Also, they indicate that male and female entrepreneurs are equally effective as managers provided they have access to the same resources, including time.

Keywords: Women; Entrepreneurs; Social norms; Use of time; Business profits; Ecuador (search for similar items in EconPapers)
JEL-codes: A13 J16 J22 L25 L26 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11187-017-9925-z

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