Gender discrimination in access to capital: Experimental evidence from Ethiopian SBGs

Project Women's Economic Empowerment

Gender discrimination against entrepreneurs may drive gender gaps in access to capital and subsequently reduce the performance of female-owned businesses. This raises concerns about gender equity, but also growth: by misallocating capital, discrimination can reduce the returns to capital and thereby reduce productivity and economic growth. Using a randomized experiment, the researchers aim to identify whether financial providers discriminate against female entrepreneurs when evaluating their business’ productivity. The research design will also identify the efficiency implications of discrimination (i.e. implications on return to capital and productivity), and the underlying mechanism driving discrimination.