Does Gender Matter for Firm Performance? Evidence from Eastern Europe and Central Asia

53 Pages Posted: 20 Apr 2016

See all articles by Shwetlena Sabarwal

Shwetlena Sabarwal

World Bank

Katherine Terrell

Stephen M. Ross School of Business at the University of Michigan; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Gerald R. Ford School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2008

Abstract

Using 2005 firm level data for 26 countries in Eastern and Central Europe, this paper estimates performance gaps between male and female-owned businesses, while controlling for location by industry and country. The findings show that female entrepreneurs have a significantly smaller scale of operations (as measured by sales revenues) and are less efficient in terms of total factor productivity, although the difference is small. However, women entrepreneurs generate the same amount of profit per unit of revenue as men. Although both male and female entrepreneurs in the region are sub-optimally small, women's returns to scale are significantly larger than men's, implying that women would gain more from increasing their scale. The authors argue that the main reasons for the sub-optimal size of female-owned firms are that they are both capital constrained and concentrated in industries with small firms.

Keywords: Access to Finance, Banks & Banking Reform, Gender and Health, Genderand Law

Suggested Citation

Sabarwal, Shwetlena and Terrell, Katherine, Does Gender Matter for Firm Performance? Evidence from Eastern Europe and Central Asia (September 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1262646

Shwetlena Sabarwal (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Katherine Terrell

Stephen M. Ross School of Business at the University of Michigan ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

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