de Mel, SureshMcKenzie, DavidWoodruff, Christopher2012-06-012012-06-012008-10https://hdl.handle.net/10986/6933This paper analyzes data from a randomized experiment on mean returns to capital in Sri Lankan micro-enterprises. The findings show greater returns among men than among women; indeed, returns were not different from zero for women. The authors explore different explanations for the lower returns among female owners, and find no evidence that the gender gap is explained by differences in ability, risk aversion, or entrepreneurial attitudes. Differential access to unpaid family labor and social constraints limiting sales to local areas are not important. However, there is evidence that women invested grants differently from men. A smaller share of the smaller grants remained in the female-owned enterprises, and men were more likely to spend the grant on working capital and women on equipment. The gender gap is largest when male-dominated sectors are compared with female-dominated sectors, although female returns are lower than male returns even for females working in the same industries as men. The authors examine the heterogeneity of returns to determine whether any group of businesses owned by women benefit from easing capital constraints. The results suggest there is a large group of high-return male owners and a smaller group of poor, high-ability, female owners who might benefit from more access to capital.CC BY 3.0 IGOACCESS TO BANKACCESS TO BANK LOANSACCESS TO CAPITALACCESS TO CREDITACCESS TO FINANCEACCESS TO FORMAL FINANCEACCOUNTINGACHIEVEMENT MOTIVATIONAGRICULTUREAMOUNT OF CAPITALASSET ACCUMULATIONASSET OWNERSHIPBANKSBEST PRACTICESBORROWINGBUSINESS EXPERIENCEBUSINESS NETWORKSBUSINESS OWNERCAPITAL CONSTRAINTSCAPITAL FLOWSCAPITAL INJECTIONCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL STOCKCAPITAL STOCKSCARE FOR CHILDRENCASH PAYMENTCOLLATERALCONSUMERSCREDIT CONSTRAINTSCREDIT MARKETCREDIT MARKETSCREDIT UNIONSCURRENT ACCOUNTCURRENT EXPENDITURECUSTOMER BASEDECISION MAKINGDEMAND FOR CREDITDEPOSIT ACCOUNTDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT ECONOMICSDIMINISHING RETURNSDUMMY VARIABLEDUMMY VARIABLESDURABLEDURABLE ASSETSDURABLE GOODSEARNINGSECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHEDUCATION LEVELSELDERLY PARENTSEMPOWERMENTENTREPRENEURENTREPRENEURIAL ABILITYENTREPRENEURIAL ATTITUDESENTREPRENEURSEQUAL AMOUNTSEQUALITYEQUIPMENTEQUIPMENT PURCHASEEQUIPMENT PURCHASESEXPENDITUREEXPENDITURESFAMILY MEMBERSFATHERFEMALEFEMALE BORROWERSFEMALE ENTERPRISEFEMALE ENTERPRISESFEMALE ENTREPRENEURSFEMALE WORKERSFEMALE-OWNED BUSINESSESFEMALESFINANCIAL ASSETSFINANCIAL INSTITUTIONFINANCIAL LITERACYFINANCIAL SERVICESFINANCIAL SUPPORTFIRM PERFORMANCEFIXED DEPOSITFORMAL CREDITFORMAL LOANFUTURE RESEARCHGENDERGENDER ANALYSISGENDER DIFFERENCEGENDER DIFFERENCESGENDER EQUALITYGENDER GAPGENDERSHEALTH CAREHOUSEHOLD ASSET ACCUMULATIONHOUSEHOLD BARGAININGHOUSEHOLD BUSINESSHOUSEHOLD EXPENDITUREHOUSEHOLD EXPENDITURESHOUSEHOLD INCOMEHOUSEHOLDSHUSBANDHUSBANDSILLNESSINCOMPLETE MARKETSINFLATIONINITIAL FUNDINGINITIAL INVESTMENTSINSTRUMENTINSURANCEINSURANCE MARKETSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINVENTORIESINVENTORYINVESTINGINVESTMENT BEHAVIORINVESTMENT DECISIONSINVESTMENT OPPORTUNITIESLABOR FORCELABOR FORCE PARTICIPATIONLABOR FORCE SURVEYLABOR HOURSLABOR MARKETLENDERSLIQUIDITYLOANLOAN AMOUNTLOANS FROM FAMILYLOTTERYLOW-INCOMEMARKET INTEREST RATEMARKET INTEREST RATESMARKET VALUEMICRO-ENTERPRISESMICRO-LOANSMICROCREDITMICROENTERPRISESMICROFINANCEMOTHEROLDER CHILDRENPHYSICAL CAPITALPOLITICAL ECONOMYPOVERTY ALLEVIATIONPRICE INDEXPRICE INDICESPRIVATE BANKPRODUCTION FUNCTIONPRODUCTIVITYPROFITABLE INVESTMENTPROFITABLE INVESTMENTSREINVESTMENTRESEARCH ASSISTANCERESOURCE ALLOCATIONRESPONSIBILITIESRETIREMENTRETURNRETURN ON INVESTMENTRETURNSRISK AVERSERISK AVERSIONRISK-AVERSE INDIVIDUALSSALESSAVINGSSAVINGS ACCOUNTSELF EMPLOYMENTSELF-EMPLOYMENTSMALL ENTERPRISESSOURCE OF INCOMESOURCE OF INFORMATIONSTART-UPSUPPLY OF CREDITTYPES OF ASSETSUMBRELLA ORGANIZATIONVILLAGEWAGEWEALTHWOMEN ENTREPRENEURSWORKING AGEWORKING CAPITALMicrodata SetWorld Bank10.1596/1813-9450-4746