Do Crises Hit Female-Managed and Male-Managed Firms Differently? Evidence from the 2008 Financial Crisis
While efforts are currently in place to collect data on the economic consequences of the COVID-19 pandemic, this note looks at the experience of the 2008 financial crisis to gain insights on possible differential effects of crises on female and male entrepreneurs. Specially, the note uses firm-level data collected immediately after the 2008 financial crisis in six countries in Eastern Europe and Central Asia (Bulgaria, Hungary, Latvia, Lithuania, Romania, and Turkey) to look at two aspects of the differential effect of the crisis. First, whether there is a difference in the exit rate for firms with male vs. female top managers; and second, whether, among firms that stayed in business, female-managed firms are affected disproportionally. Results show that firms run by female top managers are more likely to exit the market. Secondly, when able to stay in business, male and female-managed firms suffered a similar impact in the short term; however, female-managed firms suffered more than male-managed firms in the longer term.
| Main Authors: | , , |
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| Format: | Brief biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020-09-10
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| Subjects: | GENDER, BUSINESS ECONOMICS, BUSINESS ENVIRONMENT, RESPONSE TO CRISIS, GENDER AND PRIVATE SECTOR DEVELOPMENT, PANDEMIC IMPACT, FEMALE ENTREPRENEURS, ENTREPRENEURSHIP, ACCESS TO FINANCE, FIRM EXIT RATE, FINANCIAL CRISIS, |
| Online Access: | http://documents.worldbank.org/curated/en/245081599798431897/Do-Crises-hit-Female-Managed-and-Male-Managed-Firms-Differently-Evidence-from-the-2008-Financial-Crisis https://hdl.handle.net/10986/34458 |
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| Summary: | While efforts are currently in place to
collect data on the economic consequences of the COVID-19
pandemic, this note looks at the experience of the 2008
financial crisis to gain insights on possible differential
effects of crises on female and male entrepreneurs.
Specially, the note uses firm-level data collected
immediately after the 2008 financial crisis in six countries
in Eastern Europe and Central Asia (Bulgaria, Hungary,
Latvia, Lithuania, Romania, and Turkey) to look at two
aspects of the differential effect of the crisis. First,
whether there is a difference in the exit rate for firms
with male vs. female top managers; and second, whether,
among firms that stayed in business, female-managed firms
are affected disproportionally. Results show that firms run
by female top managers are more likely to exit the market.
Secondly, when able to stay in business, male and
female-managed firms suffered a similar impact in the short
term; however, female-managed firms suffered more than
male-managed firms in the longer term. |
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