Size-Dependent Gender Gaps in Entrepreneurship: The Case of Chile | LAER 31

This paper documents differences in firm size depending on whether their manager is a man or a woman and studies the aggregate implications of these gender gaps in Chile. We document that in 2007 less than a quarter of firms are managed by women and that this gap takes its largest value for managers with tertiary education or more. In terms of their number of workers, female-run firms are on average about three times smaller than those run by men. Moreover, the ratio of men to women managers is always above one, but it is much higher for large and medium firms than for small or micro ones. These differences remain significant after controlling for several manager and firm characteristics. We then use an extended version of the theoretical framework developed in Cuberes and Teignier (2016) to incorporate these facts and obtain quantitative predictions about their effects on aggregate productivity and income in Chile. We find that the observed gender gaps in entrepreneurship in Chile generate a fall in aggregate productivity and aggregate income of 7.5%.

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Latin American Economic Review aims to be the leading general interest journal on topics relevant to Latin America. The journal welcomes high-quality theoretical and quantitative papers on economic, social and political-economy issues with a regional focus. Articles presenting new data bases or describing structural reforms within a rigorous theoretical framework will also be considered. A few (illustrative) examples of topics that may be of special interest to this journal include: inflation, informal sector, corruption, crime, drug policy, unions, social exclusion, price controls, energy and environmental policy, natural resources, and technology transfer.