Misallocation across establishment gender

Abstract

I find substantial differences in the extent of misallocation across male and female-led establishments spanning many low and middle-income countries. Across broad geographic regions, female establishments face higher distortions to operating a business which are primarily due to higher capital distortions. Equalizing distortions across gender increases female sales shares and can imply proportionally large increases in TFP attributed to women. Regression estimates show that higher female distortions are negatively associated with economic development.