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Blog » Rule of Law and Female Entrepreneurship (2020)

Rule of Law and Female Entrepreneurship (2020)

Created Oct 03 2023, 4:06 AM by Veronica Del Motto
  • Entrepreneurship

Gender norms and a weak rule of law can disadvantage female entrepreneurs. Unequal bargaining power and fear of expropriation by men can lead women to work in less profitable industries where they collaborate with other women (rather than with men) or to avoid entrepreneurship altogether. This paper presents a model of female entrepreneurship and rule of law that predicts that women will only start businesses when they have both formal legal protection and informal bargaining power.