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Exploring the Impact of the Gender Pay Gap on Female Entrepreneurship

Uusitalo, I.K.K. (2024) Exploring the Impact of the Gender Pay Gap on Female Entrepreneurship.

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Abstract:This thesis offers insights into the influence of the gender pay gap on female entrepreneurship using regional evidence from England and Wales. The analysis is grounded in labor market theories, the human capital model, and occupational choice theory. By quantitative analysis, the research aims to recognise trends and patterns in the relationship. The findings indicate that the gender pay gap acts as a complex factor influencing female entrepreneurship. At lower levels of wage inequality, the gender pay gap appears to push women towards entrepreneurship, offering an alternative to wage-employment where wage discrimination is prevalent. However, when the gender pay gap increases further, the effect becomes negative, becoming a barrier for women to enter self-employment. Furthermore, the research reveals impacts on different types of female entrepreneurship. For female entrepreneurs without employees, the gender pay gap initially serves as a pushing factor, but later becomes a barrier as the gap reaches significant levels. For female entrepreneurs with employees the increasing gender pay gap initially has a negative effect, which later shifts to a positive, pushing effect when the threshold value is reached, suggesting that scaling up becomes a response to wage discrimination.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/100291
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