BRIDGING THE GENDER GAP IN ENTREPRENEURSHIP: AN EMPIRICAL ANALYSIS

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 the gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions, 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. 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.