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Gender specific distortions, entrepreneurship and misallocation

Ashantha Ranasinghe

Journal of Economic Dynamics and Control, 2024, vol. 162, issue C

Abstract: Women account for a small share of all business owners and a small share of the market in India's manufacturing sector. To account for these patterns, I estimate the extent of gender-specific distortions to operating a business using firm-level data. Feeding these estimates that differ across gender into a standard framework of heterogeneous producers replicates key features of the firm size distribution, on aggregate and across gender. While women face high entry barriers into entrepreneurship, they have modest impacts on female market shares when there are sharp differences in distortions across gender along the intensive margin of entrepreneurship. Policies that promote female entrepreneurship are effective, yet have only modest impacts on aggregate productivity. These findings are not unique to India, and apply across a broader set of countries.

Keywords: Gender; Entrepreneurship; Misallocation; Productivity; Micro data (search for similar items in EconPapers)
JEL-codes: J16 O1 O4 O5 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:162:y:2024:i:c:s0165188924000502

DOI: 10.1016/j.jedc.2024.104858

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Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

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