Breaking the metal ceiling: Female entrepreneurs who succeed in male-dominated sectors

Abstract

Occupational segregation significantly contributes to the earnings gender gap worldwide. We look at differences in outcomes for male and female enterprises and their sectors in Sub-Saharan Africa, a region of high female participation in entrepreneurship. Data on Uganda show that women breaking into male-dominated sectors make as much as men, and three times more than women staying in female-dominated sectors. Factors including entrepreneurial skill/abilities and credit/human capital constraints do not explain women's sectoral choices. However, information about profitability, male role models' influence, and exposure to the sector from family and friends are critical in helping women circumvent or overcome norms undergirding occupational segregation.

Gender-Based Employment Segregation

“…3 A study of Ugandan entrepreneurs found that women who enter male-dominated trades, referred to as "cross-overs," were more likely to have received technical and business training, have better financial literacy skills, and learn through an internship or apprenticeship. Surprisingly, higher educational attainment or years of previous experience did not increase a women's likelihood of being a cross-over (Campos et al, 2015).…”

“…Studying household decision making, Duflo and Udry (2004) showed that household consumption in Cote D'Ivoire varied with the identity of the owner and the source of the income. In Uganda, women entrepreneurs who worked in male-dominated trades were more likely to spend on school expenses than women in female-dominated trades (Campos et al, 2015).…”

“…Data from the US indicates that industry choice accounts for 9 to 14 percent of the gender earnings gap among the selfemployed (Hundley, 2001). A survey of entrepreneurs in Uganda found that women who entered maledominated trades earned the same revenue as men, and three times the revenue of women in femaledominated sectors (Campos et al, 2015). Finally, female farmers in Nigeria observed higher returns from switching to commercialized agriculture than men (O'Sullivan et al, 2014).…”

“…In many contexts, individuals appear to have a limited knowledge on potential job options and their relative returns, which reduces their aspirations, educational investments, and entry into particular occupations. Studies from Uganda and Kenya show that women were often unaware of earnings in male-dominated industries (Campos et al 2015;Hicks et al 2015). Thus, providing accurate information about available jobs and their returns, through training, career guidance in schools, mentorship, support from male family members, `edutainment', and apprenticeships in male-dominated sectors are promising means of convincing women to enter non-traditional sectors.…”

Unrealized Potential

“…Enabling women to shift to high value commercial crops shows promise in Africa. Access to information about potential returns for women in male-dominated fields can help female entrepreneurs cross over and shift sectors (Campos et al, 2015), provided they also get support from male mentors in the field and can withstand sexual harassment and barriers to access credit.…”