Women at the helm: gender gaps in business income among micro-entrepreneurs in Chile
摘要
This study investigates whether micro-entrepreneurial women earn lower net incomes from their microenterprises compared to their male counterparts. It relies on the 2019 Chilean data from the 6th Micro Entrepreneurship Survey (EME6) that surveyed 7,340 Chilean entrepreneurs and uses the Kitagawa–Blinder–Oaxaca decomposition as a statistical method to explain and disaggregate the difference in the mean of net business income between men and women entrepreneurs. The main contribution of this work is disentangling the gender gap into endowment differences and differences in the returns to those endowments in the context of Chilean micro-entrepreneurs who are often an underrepresented group. The findings suggest that being women negatively affects net micro-entrepreneurial income across all the results. Women have lower earnings because they are endowed with different levels of various explanatory variables, such as education and access to bank loans. The results also show that 75% of the gender difference is due to women having lower returns to those variables, suggesting the presence of a systematic effect that allows men to benefit more from their characteristic endowments.