Determinants of self-employment preference and realization among women and men in Europe and the United States

Abstract

Female\nself-employment rates are consistently lower than those of men. This\nuntapped female potential has drawn the attention of policy makers. In the\npresent paper the determinants of selfemployment rates of both men and\nwomen are investigated in the context of a two-equation model explaining\nboth actual self-employment and the preference for self-employment. A\nsystematic distinction is made between different ways in which gender can\nexert influence on (preference for) self-employment, including moderation,\nmediation and direct effects. Using Flash Eurobarometer data of about\n8,000 individuals from 29 countries (including the 15 old EU member\nstates, 10 new EU member states and the United States) probit equations\nare estimated explaining the (preference for) self-employment. Next to\ngender, explanatory variables include age, education, social capital, risk\nattitude, locus of control and perceptions of the entrepreneurial\nenvironment. Findings show that at least part of the explanation of the\nlower female self-employment rate is caused by a lower preference for\nwomen to become self-employed. We do not find evidence for a moderating\neffect of gender on the relationship between self-employment and the\npreference for self-employment, indicating that other things equal \nwomen and men who have a preference to become self-employed do not differ\nwith respect to the impact of this preference on its materialization. \nEntrepreneurship and its determinants in a cross-country setting.

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