Mind The (Profit) Gap: Why Are Female Enterprise Owners Earning Less Than Men?

Morgan Hardy and Gisella Kagy

AEA Papers and Proceedings, 2018, vol. 108, 252-55

Abstract: We explore potential causes for the well-documented profit gap between male- and female-owned microenterprises in low-income countries. We use rich data from an ongoing field project in Ghana's garment making sector, and our study sample consists of all garment making firms in a midsize district capital. Even within the same industry, male-owned firms earn nearly twice as much profit as female-owned firms. Furthermore, we find the large and persistent gender difference in profits cannot be explained by our extensive firm- and owner-level characteristics. We conclude that factors outside of individual firm or firm-owner characteristics are likely to be at play.

JEL-codes: J16 L25 L26 L67 O14 O15 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/pandp.20181025
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Citations: View citations in EconPapers (21)

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