Gender and Establishment Dynamics, 2002-2006

Abstract:     
This report examines the gender characteristics and business dynamics of establishments that were in operation as of 2002 for the 2002-2006 period, using matching data from the 2002 Survey of Business Owners (SBO) and the 1989-2006 Business Information Tracking Series (BITS). Employer establishments - establishments with paid employees - owned by women had higher closure rates and lower contraction rates than those owned by men or owned equally by men and women over the 2002-2006 period. The average four-year survival rate for all 2002 employer establishments was 70 percent; for female-owned, 66 percent; for male-owned, 72 percent; and for male and female equally owned, 69 percent. By 2006, all but two states had an overall net loss of employment in employer establishments that were in operation in 2002 due to business closures and contractions. Employer establishments in Hawaii gained 5,698 jobs and those in Nevada gained 3,498 by 2006. It is evidential that business start-ups are crucial for job creation. The number of jobs created through the expansion of existing establishments was generally insufficient to counteract the job destruction due to business deaths and contractions.

Number of Pages in PDF File: 48

Keywords: business dynamics, gender, job creation

JEL Classification: J1, M2, L26

working papers series