Female entrepreneurship, financial frictions and capital misallocation in the US

We document and quantify the effect of a gender gap in credit access on both entrepreneurship and input misallocation in the US. Female entrepreneurs are found to be more likely to face a rejection on their loan applications and to have a higher average product of capital, a sign of gender-driven ca...

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Detalles Bibliográficos
Autores: Morazzoni, Marta, Sy, Andrea
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:España
Institución:Universitat Pompeu Fabra
Repositorio:Repositorio Digital de la UPF
OAI Identifier:oai:repositori.upf.edu:10230/58647
Acceso en línea:http://hdl.handle.net/10230/58647
http://dx.doi.org/10.1016/j.jmoneco.2022.03.007
Access Level:acceso abierto
Palabra clave:Entrepreneurship
Misallocation
Aggregate productivity
Gender gaps
Financial constraints
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spelling Female entrepreneurship, financial frictions and capital misallocation in the USMorazzoni, MartaSy, AndreaEntrepreneurshipMisallocationAggregate productivityGender gapsFinancial constraintsWe document and quantify the effect of a gender gap in credit access on both entrepreneurship and input misallocation in the US. Female entrepreneurs are found to be more likely to face a rejection on their loan applications and to have a higher average product of capital, a sign of gender-driven capital misallocation that decreases in female-led firms’ access to finance. These results are not driven by differences in observable individual or businesses characteristics. Calibrating a heterogeneous agents model of entrepreneurship to the US economy, we show that the observed gap in credit access explains the bulk of the gender differences in capital allocation across firms. Eliminating such credit imbalance is estimated to potentially increase output by 4%, and to reduce capital misallocation by 12%.We acknowledge financial support from the Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centres of Excellence in R&D (CEX2019-000915-S), and the receipt of the 2021 EEA Young Economist Award. We thank the Kauffman Foundation for giving us access to their confidential data. The results and conclusions in this paper are ours and do not reflect the views of the Kauffman Foundation.Elsevier202420242022info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttp://hdl.handle.net/10230/58647http://dx.doi.org/10.1016/j.jmoneco.2022.03.007reponame:Repositorio Digital de la UPFinstname:Universitat Pompeu FabraInglésJournal of Monetary Economics. 2022;129:93-118.info:eu-repo/grantAgreement/ES/2PE/CEX2019-000915-S© 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)https://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:repositori.upf.edu:10230/586472026-06-12T07:21:37Z
dc.title.none.fl_str_mv Female entrepreneurship, financial frictions and capital misallocation in the US
title Female entrepreneurship, financial frictions and capital misallocation in the US
spellingShingle Female entrepreneurship, financial frictions and capital misallocation in the US
Morazzoni, Marta
Entrepreneurship
Misallocation
Aggregate productivity
Gender gaps
Financial constraints
title_short Female entrepreneurship, financial frictions and capital misallocation in the US
title_full Female entrepreneurship, financial frictions and capital misallocation in the US
title_fullStr Female entrepreneurship, financial frictions and capital misallocation in the US
title_full_unstemmed Female entrepreneurship, financial frictions and capital misallocation in the US
title_sort Female entrepreneurship, financial frictions and capital misallocation in the US
dc.creator.none.fl_str_mv Morazzoni, Marta
Sy, Andrea
author Morazzoni, Marta
author_facet Morazzoni, Marta
Sy, Andrea
author_role author
author2 Sy, Andrea
author2_role author
dc.subject.none.fl_str_mv Entrepreneurship
Misallocation
Aggregate productivity
Gender gaps
Financial constraints
topic Entrepreneurship
Misallocation
Aggregate productivity
Gender gaps
Financial constraints
description We document and quantify the effect of a gender gap in credit access on both entrepreneurship and input misallocation in the US. Female entrepreneurs are found to be more likely to face a rejection on their loan applications and to have a higher average product of capital, a sign of gender-driven capital misallocation that decreases in female-led firms’ access to finance. These results are not driven by differences in observable individual or businesses characteristics. Calibrating a heterogeneous agents model of entrepreneurship to the US economy, we show that the observed gap in credit access explains the bulk of the gender differences in capital allocation across firms. Eliminating such credit imbalance is estimated to potentially increase output by 4%, and to reduce capital misallocation by 12%.
publishDate 2022
dc.date.none.fl_str_mv 2022
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10230/58647
http://dx.doi.org/10.1016/j.jmoneco.2022.03.007
url http://hdl.handle.net/10230/58647
http://dx.doi.org/10.1016/j.jmoneco.2022.03.007
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Journal of Monetary Economics. 2022;129:93-118.
info:eu-repo/grantAgreement/ES/2PE/CEX2019-000915-S
dc.rights.none.fl_str_mv https://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
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dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositorio Digital de la UPF
instname:Universitat Pompeu Fabra
instname_str Universitat Pompeu Fabra
reponame_str Repositorio Digital de la UPF
collection Repositorio Digital de la UPF
repository.name.fl_str_mv
repository.mail.fl_str_mv
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