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

Morgan Hardy, Gisella Kagy

Research output: Contribution to journalArticle

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.
Original languageEnglish (US)
Pages (from-to)252-55
Number of pages3
JournalAmerican Economic Association Papers and Proceedings
StatePublished - May 2018

Keywords

  • gender
  • firms

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