The labor productivity gap between female and male-managed firms in the formal private sector

Asif Islam, Isis Gaddis, Amparo Palacios-Lopez and Mohammad Amin

No 8445, Policy Research Working Paper Series from The World Bank

Abstract: This study analyzes gender differences in labor productivity in the formal private sector, using data from 128 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among female- than male-managed firms. The analyses are based on female management, which is more strongly associated with labor productivity than female participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of female-managed firms relative to male-managed firms: fewer female- than male-managed firms protect themselves from crime and power outages, have their own websites, and are (co-) owned by foreigners. In addition, in the manufacturing sector, female-managed firms are less capitalized and have lower labor cost than male-managed firms.

Keywords: Labor Markets; Gender and Development; Inequality; Food&Beverage Industry; Plastics&Rubber Industry; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Common Carriers Industry; Construction Industry; Business Cycles and Stabilization Policies; General Manufacturing; Wholesale&Retail Trade Industry (search for similar items in EconPapers)
Date: 2018-05-16
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Citations: View citations in EconPapers (2)

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