Gender pay gap in explaining female entrepreneurship – industry perspective of selected European countries

Abstract

Purpose: Although several theoretical concepts imply different determinants of female entrepreneurship, the literature lacks a consensus on their significance. The aim of this paper is to verify how industry specificity influences the gender pay gap and its relation to female entrepreneurship. Design/methodology/approach: The authors distinguish industries based on the gender equality level, measured jointly by two factors: pay gap level and female participation rate. The study has been conducted among 22 European countries with relatively similar institutional backgrounds. The authors carry out the analysis based on the panel regression models, which enable the authors to verify two predefined research questions. Findings: The results of panel regression models indicate that industry specificity plays a significant role in the relation between the pay gap and female entrepreneurship. Generally, it can be concluded that gender pay gap as a measure of gender inequality is dependent on the industry specificity. The dependence is especially visible in the breakdown of male- and female-dominated industries. Originality/value: The findings are consistent with the assumption that the gender pay gap is a discriminatory factor for women willing to become entrepreneurs in certain industries. The findings of the study may constitute a vital tool in planning to overcome it.