Intra-Family Relationship and Female Entrepreneurship
64 Pages Posted: 3 Nov 2020 Last revised: 2 Feb 2022
Date Written: September 14, 2020
We study how the intra-family relationship affects female entrepreneurship. By utilizing a major change in marriage law in the U.S., we find that female entrepreneurship increases significantly when the divorce regime changes from mutual consent to unilateral, especially when property rights are more favorable to women. This effect is mainly from an increase in the survival of existing female entrepreneurs rather than the entry of previous housewives. We consider a variety of potential mechanisms and conclude that the increase in female entrepreneurship after the law change is most likely driven by an increase in women’s intra- family bargaining power against spouses.
Keywords: Female Entrepreneurship, Intra-household Bargaining Power, Marriage Law
JEL Classification: D10; G59; J12; J16; L26; G30
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