The Labor Productivity Gap between Female and Male-Managed Firms in the Formal Private Sector

42 Pages Posted: 17 May 2018

See all articles by Asif Islam

Asif Islam

World Bank - Development Economics Group (DEC)

Isis Gaddis

World Bank

Amparo Palacios-Lopez

World Bank

Mohammad Amin

World Bank - Enterprise Analysis Unit

Date Written: May 16, 2018

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

Suggested Citation

Islam, Asif Mohammed and Gaddis, Isis and Palacios-Lopez, Amparo and Amin, Mohammad, The Labor Productivity Gap between Female and Male-Managed Firms in the Formal Private Sector (May 16, 2018). World Bank Policy Research Working Paper No. 8445, Available at SSRN: https://ssrn.com/abstract=3179822

Asif Mohammed Islam (Contact Author)

World Bank - Development Economics Group (DEC) ( email )

1818 H Street N.W.
Washington, DC 20433
United States

Isis Gaddis

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Amparo Palacios-Lopez

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Mohammad Amin

World Bank - Enterprise Analysis Unit ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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