COVID-19 and Women-Led Businesses around the World

The impacts of crises are never gender-neutral, and the COVID-19 pandemic is no exception. Using a brand-new dataset covering 24 countries, we document that women-led businesses are subject to a higher likelihood of closure and a longer closure duration than men-led businesses during the pandemic. Women business leaders are also more pessimistic about the future than men business leaders. The disadvantages suffered by women-led businesses widen in high gender inequality economies and developing economies. Our results further indicate that finance and labor factors are likely to be the major contributors to these disadvantages. We suggest that COVID-19's policy response should not be gender-neutral.

Automated summary

During the pandemic, businesses led by women are more likely to be closed for a longer duration compared to those led by men, with women business leaders also being more pessimistic about the future. These disadvantages are more pronounced in economies with high gender inequality and developing countries. Finance and labor factors are likely major contributors to these disparities. Policy responses to COVID-19 should take these gender-specific impacts into consideration.