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Explaining the Gender Gap in Entrepreneurial Propensity

  • Sana’ Kamal
  • Yousef DaoudEmail author
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

This study investigates the gender gap in entrepreneurial activity rates using the Conditional Mixed Process estimator (CMP) and controlling for the possible endogeneity of perceptual variables. We use the Global Entrepreneurship Monitor (GEM) adult population survey data for 12 countries. We find that the gender gap in activity rates shrinks drastically from −0.37 to −0.06 after controlling for observed traits, perceptual variables, and correcting for endogeneity using CMP. Our choice of instrument and estimation technique implies that CMP is more efficient and that unobserved factors still play a role in explaining the entrepreneurial decision. Unlike what is typically found in the literature that the gap disappears and becomes insignificant when endogeneity and control variables are added. However, in line with the argument that the gender gap in activity rates can be explained by skill perception and other covariates.

Keywords

Entrepreneurship Gender Endogeneity 

Notes

Acknowledgment

The authors would like to thank Thomas Schot, Shaker Sarsour, and Suhail Sultan for comments and feedback on earlier drafts of this paper.

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Master Program in EconomicsBirzeit UniversityBirzeitPalestine
  2. 2.MDE Program, Doha Institute for Graduate StudiesAl-DaayenQatar

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