The Myth of Female Credit Discrimination in African Manufacturing |
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Authors: | Henrik Hansen John Rand |
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Institution: | 1. Department of Economics, University of Copenhagenhenrik.hansen@econ.ku.dk;3. Department of Food and Resource Economics, University of Copenhagen, Denmark |
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Abstract: | AbstractWe examine credit constraint differentials between male and female manufacturing entrepreneurs using firm data from 16 sub-Saharan Africa countries. Small enterprises owned by female entrepreneurs are less likely to be credit constrained compared to their male counterparts, while this is reversed for medium-sized enterprises. A generalised Oaxaca–Blinder decomposition shows that the gap is predominantly a pure gender effect. We argue that this finding is mainly due to female favouritism in loans to micro and small firms because the gap is reversed for medium-sized enterprises and because we find no sign of superior female entrepreneurial performance in observable indicators. |
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