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Bridging the Gender Gap in Entrepreneurship: Evidence from Europe

Elvin Afandi () and Majid Kermani

No wp1074, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: There is no gender difference between success in establishing a business once both males and females have the same preference to self-employment and attempts towards establishing a new business. However, the gender gap tends to be huge when it comes to individual preferences and attempts to start up an entrepreneurial activity. In this study, we empirically estimate the role of inequality in individual and country attributes between man and woman in the bridging this gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions on choice of weighting matrix for non-linear probability models, we found that differences in both individual as well as country characteristics largely favor males, while the former play greater role in explaining the gender gap. About a one third of the gender gap in both latent as well as nascent entrepreneurship can be traced back to females owning smaller endowments than males. Empirical results also show differences in return to measured characteristics favor males. Nevertheless, a portion of gender gap that is unexplained by the differences in these characteristics and their coefficients (or return) could still indicate gender discrimination.

Keywords: latent entrepreneurship; nascent entrepreneurship; gender gap (search for similar items in EconPapers)
JEL-codes: J16 L26 M13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-ent and nep-sbm
Date: 2014-02-01
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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2014-1074

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