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The gender wage gap and its effect on women’s entrepreneurship

The gender wage gap and its effect on women’s entrepreneurship We demonstrate an inverse relationship between women’s financial equality status with men (as proxied by gender wage gap), and women’s entrepreneurship participation at the U.S. state level. Gender wage gap affects women’s opportunity cost of the entrepreneurship decision. In states where women’s status is lower, women’s opportunity cost of becoming an entrepreneur is lower because their wages are lower, increasing women’s entrepreneurship participation. We also demonstrate that states’ demographics are important factors, but only education is specific to women. Collectively, we find that women choose to be entrepreneurial when their status is lower, which reflects women’s economic resiliency. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Applied Economics Taylor & Francis

The gender wage gap and its effect on women’s entrepreneurship

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References (27)

Publisher
Taylor & Francis
Copyright
© 2023 Informa UK Limited, trading as Taylor & Francis Group
ISSN
1466-4283
eISSN
9999-7004
DOI
10.1080/00036846.2023.2212968
Publisher site
See Article on Publisher Site

Abstract

We demonstrate an inverse relationship between women’s financial equality status with men (as proxied by gender wage gap), and women’s entrepreneurship participation at the U.S. state level. Gender wage gap affects women’s opportunity cost of the entrepreneurship decision. In states where women’s status is lower, women’s opportunity cost of becoming an entrepreneur is lower because their wages are lower, increasing women’s entrepreneurship participation. We also demonstrate that states’ demographics are important factors, but only education is specific to women. Collectively, we find that women choose to be entrepreneurial when their status is lower, which reflects women’s economic resiliency.

Journal

Applied Economics – Taylor & Francis

Published: May 24, 2023

Keywords: Entrepreneurship; gender wage gap; opportunity cost; labour economics; women’s resiliency; J15; J16; J31

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