Female Innovative Entrepreneurship and Maternity Risk

76 Pages Posted: 10 Mar 2020 Last revised: 23 Nov 2021

See all articles by Fabrizio Core

Fabrizio Core

Erasmus University Rotterdam (EUR) - Department of Business Economics

Date Written: January 13, 2020

Abstract

I investigate how female innovative entrepreneurship responds to shocks to maternity risk, defined as the possibility of unexpected pregnancies. Exploiting the liberalization of an emergency contraception pill in Italy, combined with cross-sectional variation in access to abortion, I find that lower maternity risk leads to an increase in equity holdings, initial investments, and probability of being executive of younger female founders. Firms with more female-held equity also become riskier but more likely to attract venture capital in their early stages. Therefore, decreasing maternity risk reduces the gender gap in entrepreneurship, and it allows women to select into riskier ventures.

Keywords: entrepreneurship; contraception; gender gap; maternity risk; equity holdings

JEL Classification: G30, L26, M13, J16

Suggested Citation

Core, Fabrizio, Female Innovative Entrepreneurship and Maternity Risk (January 13, 2020). Available at SSRN: https://ssrn.com/abstract=3539508 or http://dx.doi.org/10.2139/ssrn.3539508

Fabrizio Core (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Business Economics ( email )

Netherlands

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