Tackling the Global Profitarchy : Gender and the Choice of Business Sector

Sectoral segregation is often used to explain a large part of a well-documented gender earnings gap in business profits. Women tend to sort into different sectors than men, and the sectors dominated by women tend to be less profitable. This paper i...

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Main Authors: Goldstein, Markus, Gonzalez Martinez, Paula, Papineni, Sreelakshmi
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/734371558715932769/Tackling-the-Global-Profitarchy-Gender-and-the-Choice-of-Business-Sector
http://hdl.handle.net/10986/31747
id okr-10986-31747
recordtype oai_dc
spelling okr-10986-317472022-09-20T00:13:40Z Tackling the Global Profitarchy : Gender and the Choice of Business Sector Goldstein, Markus Gonzalez Martinez, Paula Papineni, Sreelakshmi SMALL AND MEDIUM ENTERPRISES MICROENTERPRISES ENTREPRENEURSHIP GENDER GENDER GAP GENDER EARNINGS GAP AFRICA GENDER POLICY GENDER INNOVATION LAB WOMEN AND PRIVATE SECTOR DEVELOPMENT Sectoral segregation is often used to explain a large part of a well-documented gender earnings gap in business profits. Women tend to sort into different sectors than men, and the sectors dominated by women tend to be less profitable. This paper investigates the horizonal dimension of sectoral segregation by studying global data on female and male enterprises operating in sectors that are typically dominated by the same and opposite sex. The analysis uses the novel Future of Business dataset, which spans 97 countries and was administered to enterprise owners, managers, and employees who use Facebook. The analysis finds that some of the earnings gap can indeed be explained by sector choice: female-owned businesses in male-dominated sectors make significantly higher profits than those in traditionally female sectors. The evidence points to a hierarchy of earnings, with male-owned businesses in male-dominated sectors earning the most, women in male-dominated sectors and men in female-concentrated sectors in the middle tier, and women in female-concentrated sectors at the bottom. Correlational analysis suggests that women who own businesses in male-dominated sectors are younger, married, and more likely to have inherited the business than women in female-concentrated sectors. They have similar education to women in female-concentrated sectors and present higher self-efficacy but lower entrepreneurial identity and commitment to the sector. Male support networks appear to be key for female-owned firms, with co-ownership with husbands and male role models factoring into the decision to cross over. 2019-05-30T20:00:32Z 2019-05-30T20:00:32Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/734371558715932769/Tackling-the-Global-Profitarchy-Gender-and-the-Choice-of-Business-Sector http://hdl.handle.net/10986/31747 English Policy Research Working Paper;No. 8865 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SMALL AND MEDIUM ENTERPRISES
MICROENTERPRISES
ENTREPRENEURSHIP
GENDER
GENDER GAP
GENDER EARNINGS GAP
AFRICA GENDER POLICY
GENDER INNOVATION LAB
WOMEN AND PRIVATE SECTOR DEVELOPMENT
spellingShingle SMALL AND MEDIUM ENTERPRISES
MICROENTERPRISES
ENTREPRENEURSHIP
GENDER
GENDER GAP
GENDER EARNINGS GAP
AFRICA GENDER POLICY
GENDER INNOVATION LAB
WOMEN AND PRIVATE SECTOR DEVELOPMENT
Goldstein, Markus
Gonzalez Martinez, Paula
Papineni, Sreelakshmi
Tackling the Global Profitarchy : Gender and the Choice of Business Sector
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 8865
description Sectoral segregation is often used to explain a large part of a well-documented gender earnings gap in business profits. Women tend to sort into different sectors than men, and the sectors dominated by women tend to be less profitable. This paper investigates the horizonal dimension of sectoral segregation by studying global data on female and male enterprises operating in sectors that are typically dominated by the same and opposite sex. The analysis uses the novel Future of Business dataset, which spans 97 countries and was administered to enterprise owners, managers, and employees who use Facebook. The analysis finds that some of the earnings gap can indeed be explained by sector choice: female-owned businesses in male-dominated sectors make significantly higher profits than those in traditionally female sectors. The evidence points to a hierarchy of earnings, with male-owned businesses in male-dominated sectors earning the most, women in male-dominated sectors and men in female-concentrated sectors in the middle tier, and women in female-concentrated sectors at the bottom. Correlational analysis suggests that women who own businesses in male-dominated sectors are younger, married, and more likely to have inherited the business than women in female-concentrated sectors. They have similar education to women in female-concentrated sectors and present higher self-efficacy but lower entrepreneurial identity and commitment to the sector. Male support networks appear to be key for female-owned firms, with co-ownership with husbands and male role models factoring into the decision to cross over.
format Working Paper
author Goldstein, Markus
Gonzalez Martinez, Paula
Papineni, Sreelakshmi
author_facet Goldstein, Markus
Gonzalez Martinez, Paula
Papineni, Sreelakshmi
author_sort Goldstein, Markus
title Tackling the Global Profitarchy : Gender and the Choice of Business Sector
title_short Tackling the Global Profitarchy : Gender and the Choice of Business Sector
title_full Tackling the Global Profitarchy : Gender and the Choice of Business Sector
title_fullStr Tackling the Global Profitarchy : Gender and the Choice of Business Sector
title_full_unstemmed Tackling the Global Profitarchy : Gender and the Choice of Business Sector
title_sort tackling the global profitarchy : gender and the choice of business sector
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/734371558715932769/Tackling-the-Global-Profitarchy-Gender-and-the-Choice-of-Business-Sector
http://hdl.handle.net/10986/31747
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