Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit

Peer Reviewed icon Peer Reviewed
Date issued
Oct 2013
Subject
Gender Equality;
Financial Policy;
Financial Service;
Financial Market
JEL code
G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages;
J16 - Economics of Gender • Non-labor Discrimination;
O54 - Latin America • Caribbean
Category
Discussion Papers
Standards measures of female ownership and management of firms included in the World Bank Enterprise Survey do not support the existence of a gender gap in access to finance in the Latin American and Caribbean region. Nonetheless, more precise measures show that women-led businesses are more likely to be financially constrained than other comparable firms. The evidence presented herein suggests that this gender gap may be driven by taste-based discrimination. This paper exploits a rich dataset that provides detailed information about female ownership and management in firms, allowing for further understanding of gender gaps in access to finance.