Publication: Understanding Women’s Lower Participation than Men as Workers, Top Managers, and Owners in Private Firms in the EU-27 Countries
Loading...
Date
2025-02-27
ISSN
Published
2025-02-27
Author(s)
Editor(s)
Abstract
This Brief examines issues related to women’s participation as workers, top managers, and owners of private firms in 27 European Union countries (EU-27), using the rich database of the World Bank Enterprise Surveys. The analysis focuses on EU regions varying between about 800,000 and 3 million inhabitants (NUTS2-level groupings). Overall, women’s participation as workers, top managers, and firm owners is statistically significantly less than that of men. Surprisingly, richer NUTS2 regions experience a larger gender gap favoring men in employment, top manager positions, and firm ownership. Another worrying feature is that relative to men, women workers tend to be concentrated in firms that are less productive and pay low wages. Thus, closing gender gaps in income requires not just more jobs but also better quality of jobs for women. Having a woman as the top manager of the firm is associated with a higher share of women workers in the firm, but this effect is much stronger when the firm initially has a relatively high share of women workers. A gender gap also exists in labor productivity, which is lower for women-run firms than men-run firms, and for firms with higher women’s ownership. These gaps in labor productivity are much larger at lower quantiles of labor productivity, implying the presence of sticky floors but not necessarily glass ceilings in the EU-27 countries. The Brief identifies some of the factors that are correlated with the average gender labor productivity gap and estimates their contribution to the gap. There is no systematic difference in the level of constraints, including access to finance, faced by men-run versus women-run firms and/or by firms at different levels of women’s ownership.
Link to Data Set
Citation
“Amin, Mohammad. 2025. Understanding Women’s Lower Participation than Men as Workers, Top Managers, and Owners in Private Firms in the EU-27 Countries. Enterprise Note; No. 45. © World Bank. http://hdl.handle.net/10986/42877 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Does Mandating Nondiscrimination in Hiring Practices Influence Women's Employment? Evidence Using Firm-level Data(World Bank Group, Washington, DC, 2014-10)This study explores the relationship between mandating a nondiscrimination clause in hiring practices along gender lines and the employment of women versus men in 58 developing countries. The study finds a strong positive relationship between a nondiscrimination in hiring clause and women's relative to men's employment. The relationship is robust to several controls at the firm and country levels. The results also show sharp heterogeneity in the relationship between the nondiscrimination in hiring clause and women's versus men's employment, with the relationship being much larger in richer countries and in countries with more women in the population as well as among relatively smaller firms.Publication Women Managers and the Gender-Based Gap in Access to Education(World Bank, Washington, DC, 2015-05)Several studies explore the differences in men’s and women’s labor market participation rates and wages. Some of these differences have been linked to gender disparities in education attainment and access. The present paper contributes to this literature by analyzing the relationship between the proclivity of a firm to have a female top manager and access to education among women relative to men in the country. The paper combines the literature on women’s careers in management, which has mostly focused on developed countries, with the development literature that has emphasized the importance of access to education. Using firm-level data for 73 developing countries, the analysis finds strong evidence that countries with a higher proportion of female top managers also have higher enrollment rates for women relative to men in primary, secondary, and tertiary education.Publication Exports and Women Workers in Formal Firms(World Bank, Washington, DC, 2021-01)Theory suggests several ways in which exporting may benefit women’s employment. However, the empirical evidence is mixed and limited, especially for developing countries. This paper uses firm-level survey data for 91 developing countries to estimate the relationship between exporting and the share of women workers at the firm. The analysis pays close attention to endogeneity concerns. First, it proxies a given firms’ exports by the average exports of all other firms in the same country-year-industry cell. Second, it exploits the repeated cross-section nature of the data and analyzes how changes over time in exporting activity are associated with changes in the share of women workers. The strategy is more immune to endogeneity problems than pure cross-section regressions. Third, it tests several mechanism or mediating factors as predicted by the theory through which exporting impacts women’s employment prospects. The predictions are confirmed in the data, an unlikely scenario if exports were a mere proxy for other correlated drivers of women’s employment. The results show a large, positive impact of higher exports on the share of women workers. A conservative estimate is that for each percentage point increase in the ratio of exports to total sales, the share of women workers increases by 0.16 percentage point. Consistent with the theoretical predictions, this positive relationship is much larger (more positive) in industries that rely more on women workers, in country-industry pairs where competitive pressure is largely from international markets in comparison to less competitive domestic markets, when social attitudes and labor laws are more favorable toward women’s work, and when the law and order situation is more business friendly.Publication The Labor Productivity Gap between Female and Male-Managed Firms in the Formal Private Sector(World Bank, Washington, DC, 2018-05)This study analyzes gender differences in labor productivity in the formal private sector, using data from 128 mostly developing economies. The results reveal a sizable unconditional gap, with labor productivity being approximately 11 percent lower among female- than male-managed firms. The analyses are based on female management, which is more strongly associated with labor productivity than female participation in ownership, which has been the focus of most previous studies. Decomposition techniques reveal several factors that contribute to lower labor productivity of female-managed firms relative to male-managed firms: fewer female- than male-managed firms protect themselves from crime and power outages, have their own websites, and are (co-) owned by foreigners. In addition, in the manufacturing sector, female-managed firms are less capitalized and have lower labor cost than male-managed firms.Publication Absent Laws and Missing Women(World Bank, Washington, DC, 2016-04)This study contributes to the literature on legal institutions and determinants of adult mortality. The paper explores the relationship between the presence of domestic violence legislation and women-to-men adult mortality rates. Using panel data for about 95 economies between 1990 and 2012, the analysis finds that having domestic violence legislation leads to lower women-to-men adult mortality rates. According to conservative estimations, domestic violence legislation would have saved about 33 million women between 1990 and 2012. The negative relationship between domestic violence legislation and women-to-men adult mortality rates is robust to several checks and also confirmed using the instrumental variables approach.
Users also downloaded
Showing related downloaded files
Publication Global Economic Prospects, January 2022(Washington, DC: World Bank, 2022-01-11)The global recovery is set to decelerate amid diminished policy support, continued COVID-19 flare-ups, and lingering supply bottlenecks. In contrast to that in advanced economies, output in emerging market and developing economies will remain markedly below pre-pandemic trends over the forecast horizon. The outlook is clouded by various downside risks, including new COVID-19 outbreaks, the possibility of de-anchored inflation expectations, and financial stress in a context of record-high debt levels. If some countries eventually require debt restructuring, this will be more difficult to achieve than in the past. Climate change may increase commodity price volatility, creating challenges for the almost two-thirds of emerging market and developing economies that rely heavily on commodity exports and highlighting the need for asset diversification. Social tensions may heighten as a result of the increase in inequality caused by the pandemic. These challenges underscore the importance of strengthened global cooperation to promote a green, resilient, and inclusive recovery path.Publication State of Social Protection Report 2025(Washington, DC: World Bank, 2025-04-07)Social protection goes well beyond cash transfers; it includes policies and programs that bridge skill, financial, and information gaps, aiding people in securing better jobs. The three pillars of social protection—social assistance, social insurance, and labor market programs—support households and workers in handling crises, escaping poverty, facing transitions, and seizing employment opportunities. But despite a substantial expansion over the past decade, 2 billion people remain uncovered or inadequately covered across low- and middle-income countries. Drawing from administrative and household survey data from the World Bank’s Atlas of Social Protection Indicators of Resilience and Equity (ASPIRE), the "State of Social Protection Report 2025: The 2-Billion-Person Challenge" documents advances and challenges to strengthening social protection and labor systems across low- and middle-income countries, analyzing the evolution of expenditure, coverage, and adequacy of support. This report details four policy action areas governments can embrace to maximize the benefits of adequate social protection for all: extending social protection to those in need; strengthening the adequacy of social protection support; building shock-proof social protection systems; and optimizing social protection financing. The report discusses how the path of reforms will depend on country context, capacity, and fiscal space. The rising frequency of shocks and crises calls for major investments in the adaptability and preparedness of social protection and labor systems. Amid a world in transition, social protection is more important and necessary than ever.Publication Equatorial Guinea Country Economic Memorandum(Washington, DC: World Bank, 2025-03-12)The focus of this Country Economic Memorandum (CEM) is to review key policy and reform options for Equatorial Guinea to build the foundations for renewed, diversified, and more inclusive growth. The CEM thus aims to contribute to the government’s economic development and diversification agendas. The first chapter of the report examines the drivers of past growth, and the country’s asset portfolio, and discusses possible long-term growth trajectories. The second chapter examines fiscal policy as the main instrument for efficient transformation of natural capital into physical and human capital, and outlines the fiscal challenges associated with the reliance on the volatile oil and gas markets. It identifies the key gaps in public financial management, including the challenges posed by climate change and provides reform options for implementing an effective fiscal policy. The third chapter explores the present state of education, health, and social protection and discusses priority options to boost human capital. The fourth chapter then turns to the private sector and the main cross-cutting issues that need to be addressed to encourage higher investment, innovation, and productivity. The final chapter drills down into some key sectors which are likely to play a prominent role in any new growth strategy. These include digitalization in both the public and private sectors, and integration into the world economy through trade and ecotourism.Publication Zambia Poverty and Equity Assessment 2025(Washington, DC: World Bank, 2025-02-25)Zambia is simultaneously amongst the poorest and the most unequal countries in the world. In 2022, 64.3 percent of the population - about 12.6 million individuals - was living on less than US$2.15 a day. This level is not only the 6th highest in the world but it is also misaligned with the country’s Gross Domestic Product (GDP) per capita level. In four of the five poorer countries, GDP per capita is between one-quarter and one-half of Zambia’s GDP per capita. The remaining country is South Sudan, which is immersed in a protracted fragility and conflict situation. At the same time, consumption inequality is high, even when compared with the sub-group of highly unequal resource-rich countries. In 2022, the Gini index stood at 51.5 - significantly above the World Bank’s newly adopted high-inequality threshold of 40. This places Zambia as the country with the 4th highest inequality in the region and the 6th highest globally. Resource-rich countries with similar or higher inequality have substantially lower poverty levels.Publication FY 2024 Zambia Country Opinion Survey Report(Washington, DC: World Bank, 2025-03-18)The Country Opinion Survey in Zambia assists the World Bank Group (WBG) in better understanding how stakeholders in Zambia perceive the WBG. It provides the WBG with systematic feedback from national and local governments, multilateral/bilateral agencies, media, academia, the private sector, and civil society in Zambia on 1) their views regarding the general environment in Zambia; 2) their overall attitudes toward the WBG in Zambia; 3) overall impressions of the WBG’s effectiveness and results, knowledge work and activities, and communication and information sharing in Zambia; and 4) their perceptions of the WBG’s future role in Zambia.