Multiple field experiments report positive financial returns to capital shocks for male and not female microentrepreneurs. But these analyses overlook the fact that female entrepreneurs often reside with male entrepreneurs. Using data from experiments in India, Sri Lanka, and Ghana, we show that the observed gender gap in microenterprise responses does not reflect lower returns on investment, when measured at the household level. Instead, the absence of a profit response among female-run enterprises reflects the fact that women’s capital is typically invested into their husband’s enterprise. We cannot reject equivalence of household-level income gains for male and female capital shock recipients. (JEL G31, J16, L25, L26, O12, O16)

Female labor force participation varies significantly even among countries with similar levels of economic development. Recent studies have shown that gender norms can help explain these differences in women's work, but the channels through which norms impact women's employment decisions are not well understood. We present novel data on spouses' preferences and perceptions of community attitudes about female labor in rural India and document associations with female work. We find that the perceived social cost of women's work falls on men and that husbands' opposition to female labor is associated with their wives' lower take-up of employment.

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