Date: 2011
Type: Working Paper
What drives women out of entrepreneurship? : the joint role of testosterone and culture
Working Paper, EUI ECO, 2011/02
GUISO, Luigi, RUSTICHINI, Aldo, What drives women out of entrepreneurship? : the joint role of testosterone and culture, EUI ECO, 2011/02 - https://hdl.handle.net/1814/15643
Retrieved from Cadmus, EUI Research Repository
The ratio of second to fourth digit (2D4D) has been shown to correlate negatively with entrepreneurial skills and financial success. We document that in a sample of entrepreneurs women have a lower 2D4D ratio than men, in sharp contrast with the features of the distribution in random samples. Exploiting variation across communities in indices correlated with women emancipation, we show that in regions where women are less emancipated their average DR is lower than that of men compared to regions with higher indices. This finding is consistent with the existence of gender related obstacles into entrepreneurship so that only women with well above average entrepreneurial skills find it attractive to self-select into entrepreneurship. This finding can rationalize three facts: a) fewer women than men are entrepreneurs; b) the proportion of women among entrepreneurs tends to be higher in countries with higher women emancipation; c) women who break the barrier into entrepreneurship seem to show more masculine traits. We also find that once women enter entrepreneurship, they are equally able than man to translate their ability into outcomes for the firm.
Additional information:
We thank seminar participants at the European University Institute and EIEF. First draft: August 2010; This draft: January 4, 2011
Cadmus permanent link: https://hdl.handle.net/1814/15643
ISSN: 1725-6704
Series/Number: EUI ECO; 2011/02
Keyword(s): Women emancipation Entrepreneurial ability Digit ratio Testosterone Entrepreneurship L26 L21 L25 D22
Sponsorship and Funder information:
Aldo Rustichini acknowledges financial support of the ESRC grant RES-062-23-1385