Determinants of the entrepreneurial gender gap in Latin America

Luisa Bernat Díaz (), German Lambardi () and Paola Palacios
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German Lambardi: Universidad Icesi
Paola Palacios: Universidad Icesi

Small Business Economics, 2017, vol. 48, issue 3, No 14, 727-752

Abstract: Abstract This paper identifies a set of factors associated with the decision to become an entrepreneur and the variables that account for the gender gap in entrepreneurial activity in Latin America. We estimate logit models for entrepreneurial activity under three different definitions of an entrepreneur. We also estimate the gender gap by using Fairlie’s decomposition method. Depending on the definition of entrepreneur used, the overall gender gap varies from 4 to 13 % points. Differences in observable characteristics explain between 23 and 38 % of the total gender gap. The factors that explain both entrepreneurial activity and gender gap are: education, risk tolerance; own car as primary means of transportation; work satisfaction; and parent business ownership. Variables such as age, access to loans, and need for achievement are significantly associated with entrepreneurial activity, but they play a negligible role in explaining the gender gap.

Keywords: Entrepreneurship; Gender gap; Decomposition analysis; Personality traits; Latin America; L26; O17; J23; M13 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11187-016-9789-7

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