Female Business Leaders, Business and Cultural Environment, and Productivity around the World
Studies of female business leaders and economic performance are rarely conducted with worldwide observational data, and with considerations on the underlying cultural, institutional, and business environment. This paper uses worldwide, firm-level d...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/568061591878917892/Female-Business-Leaders-Business-and-Cultural-Environment-and-Productivity-around-the-World http://hdl.handle.net/10986/33905 |
| Summary: | Studies of female business leaders and
economic performance are rarely conducted with worldwide
observational data, and with considerations on the
underlying cultural, institutional, and business
environment. This paper uses worldwide, firm-level data from
more than 100 countries to study how female-headed firms
differ from male-headed firms in productivity level and
growth, and whether the female leader performance disparity
hinges on the underlying environment. Female-headed firms
account for about 11 percent of firms and are more prevalent
in countries with better rule of law, gender equality, and
stronger individualistic culture. On average, female-headed
firms have 9 to 16 percent lower productivity and 1.6
percentage points lower labor productivity growth, compared
with male-headed firms. The disadvantage is mainly in
manufacturing firms, largely nonexistent in service firms,
and present in relatively small firms. Although the female
leader performance disadvantage is surprisingly not related
to gender equality, it is smaller where there is less
emphasis on personal networks (better rule of law, lower
trade credit linkages, lower usage of bank credit, and more
equalizing internet), less competition, and the culture is
more collective. The study does not find that the female
leader disadvantage is amplified in corrupt environments.
Africa differs significantly in that it features lower
female disadvantage, stronger female advantage in services
relative to manufacturing, and stronger sensitivity of
female business leaders to electricity provision and bank
credit access. |
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