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What a Difference a Y Makes: Female and Male Nascent Entrepreneurs in Germany

42 Pages Posted: 20 May 2004  

Joachim Wagner

University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; IZA Institute of Labor Economics

Date Written: May 2004

Abstract

In western industrialized countries men are on average more than twice as active in entrepreneurship as women. Based on data from a recent representative survey of the adult population in Germany this paper uses an empirical model for the decision to become selfemployed to test for differences between women and men in the ceteris paribus impact of several characteristics and attitudes, taking the rare events nature of becoming an entrepreneur into account. Furthermore, a non-parametric approach using Mahalanobisdistance matching of man and woman which are as similar as possible in all characteristics and attitudes but the small difference is used to investigate the difference in the propensity to become self-employed by gender. A core finding is that the difference between men and women in both the extent and the effect of considering fear of failure to be a reason not to start one's own business is important for the explanation of the gender gap in entrepreneurship.

Keywords: nascent entrepreneurs, gender differences in entrepreneurship, Germany

JEL Classification: J23

Suggested Citation

Wagner, Joachim, What a Difference a Y Makes: Female and Male Nascent Entrepreneurs in Germany (May 2004). IZA Discussion Paper No. 1134. Available at SSRN: https://ssrn.com/abstract=545666

Joachim Wagner (Contact Author)

IZA Institute of Labor Economics

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University of Lueneburg - Institute of Economics ( email )

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