Using novel firm-level data from 11 countries, this paper sheds light on technology adoption between women- and men-led businesses and how this affects firm performance. While differences in technology sophistication between firms are minor, women-led firms are less likely to adopt advanced technologies for sector-specific functions, contributing to lower labor productivity. However, when women adopt more sophisticated technologies, the returns for their businesses are more significant. These findings suggest that targeted policy efforts – such as improving access to technology, addressing skills gaps, and removing financial and informational barriers – could close productivity gaps between firms managed by women and those managed by men.
Blog » The Role of Technology in Reducing the Gender Gap in Productivity (2024)
The Role of Technology in Reducing the Gender Gap in Productivity (2024)
Using novel firm-level data from 11 countries, this paper sheds light on technology adoption between women- and men-led businesses and how this affects firm performance. While differences in technology sophistication between firms are minor, women-led firms are less likely to adopt advanced technologies for sector-specific functions, contributing to lower labor productivity. However, when women adopt more sophisticated technologies, the returns for their businesses are more significant. These findings suggest that targeted policy efforts – such as improving access to technology, addressing skills gaps, and removing financial and informational barriers – could close productivity gaps between firms managed by women and those managed by men.