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NOVAFRICA Working Paper “Closing the Gender Profit Gap”

A new working paper has been added to the NOVAFRICA Working Paper Series. Written by Catia Batista, Sandra Sequeira, and Pedro Vicente, this paper examines the complementarity between access to mobile savings accounts and improved financial management skills on the performance of female-led micro-enterprises in Mozambique.

Title: Closing the Gender Profit Gap

Authors:

Catia Batista (Nova School of Business and Economics, IZA and NOVAFRICA)

Sandra Sequeira (London School of Economics, CEPR and NOVAFRICA)

Pedro Vicente (Nova School of Business and Economics, BREAD and NOVAFRICA)

Abstract: We examine the complementarity between access to mobile savings accounts and improved financial management skills on the performance of female-led micro-enterprises in Mozambique. This combined support is associated with a large increase in both short and long-term firm profits and in financial security, when compared to the independent effect of each of these interventions. This support allowed female-headed micro-enterprises to close the gender gap in performance and financial literacy relative to their male counterparts. The main drivers of improved business performance are increased financial management practices (bookkeeping), an increase in accessible savings and reduced transfers to friends and relatives.

You can find more information here.