1. Female entrepreneurship is influenced by institutions in developing countries.
2. Social mobility can be achieved through entrepreneurial activity, especially female entrepreneurship.
3. Policies promoting respect for human rights and encouraging social networks can support entrepreneurship and social mobility.
The article "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis" explores the role of institutions in incentivizing women and men in the generational improvement process, such as social mobility. The authors use a two-stage probit least squares (2SPLS) to test gender comparisons and find that post-materialism, autonomy, network membership, democracy, and respect for human rights have positive effects on both women's and men's self-employment jointly as well as female self-employment specifically. They also show that the decision to become an entrepreneur has a greater influence on social mobility for female than for male entrepreneurs.
Overall, the article provides valuable insights into the institutional factors that affect entrepreneurship and social mobility in developing countries. However, there are some potential biases and limitations to consider.
Firstly, the study relies on data from the World Values Survey (WVS), which may not be representative of all developing countries. Additionally, the authors do not provide information on how they selected their sample or controlled for other variables that may affect their results.
Secondly, while the authors acknowledge that there is a gender gap in entrepreneurship and development outcomes, they do not explore why this gap exists or how it can be addressed beyond institutional factors. For example, they do not discuss cultural or societal barriers that may prevent women from starting businesses or accessing resources.
Thirdly, the article focuses primarily on the positive effects of entrepreneurship on social mobility without considering potential risks or negative consequences. For instance, some studies have shown that entrepreneurship can exacerbate income inequality if certain groups are excluded from opportunities or resources.
Finally, while the authors highlight policy implications regarding gender equality, they do not provide specific recommendations for how policymakers can address institutional barriers to female entrepreneurship or promote more inclusive economic growth.
In conclusion, while this article provides useful insights into how institutions affect entrepreneurship and social mobility in developing countries, it is important to consider its potential biases and limitations. Future research should explore the broader social and cultural factors that contribute to gender disparities in entrepreneurship and development outcomes, as well as potential risks and negative consequences of promoting entrepreneurship as a solution to social problems.