Female-headed enterprises are much less productive on average than male-headed enterprises, but this is largely a function of sorting: Women sort into activities that are typically less productive and run firms that are less capital-intensive. Once firm size and sector activity are accounted for, gender differences in productivity diminishes dramatically. Differences are largely a function of where women work and the type of activity they deploy.
These sorting differences are likely due to a range of factors including differences in cultural roles of men and women in these areas.
Returns to scale were not observed in these data; the key difference in productivity was the type of firm rather than the size.
Women’s economic performance is also constrained by activities in the household, for example better educated spouses appears associated with better access to capital. Interestingly, there was little evidence that inequities in human capital were significant factors in gender productivity differences.
Gender differences were not linked to returns to scale- while male owned firms are larger, there was not strong evidence of increasing returns to larger firms with greater capital intensity.
Participation differences between men and women varied between countries studied
Surveys of non-farm enterprises in rural areas that are representative of rural areas. Information collected on women-run firms & characteristics of households. Estimated participation regressions as well as production functions to compare productivity of male and female owned firms, then calculated the impact of the variables measured (capital, work type, etc) on these differences.
Observational study- did not test strategies to target
Rijkers, Bob and Costa, Rita, ‘Gender and Rural Non-Farm Entrepreneurship’ (May 1, 2012). World Bank Policy Research Working Paper No. 6066.