Working Paper: CEPR ID: DP8204
Authors: Luigi Guiso; Aldo Rustichini
Abstract: The ratio of second to fourth digit (2D4D) has been shown to correlate negatively with entrepreneurial skills and financial success. We document that in a sample of entrepreneurs women have a lower 2D4D ratio than men, in sharp contrast with the features of the distribution in random samples. Exploiting variation across communities in indices correlated with women emancipation, we show that in regions where women are less emancipated their average DR is lower than that of men compared to regions with higher indices. This finding is consistent with the existence of gender related obstacles into entrepreneurship so that only women with well above average entrepreneurial skills find it attractive to self-select into entrepreneurship.This finding can rationalize three facts: a) fewer women than men are entrepreneurs; b) the proportion of women among entrepreneurs tends to be higher in countries with higher women emancipation; c) women who break the barrier into entrepreneurship seem to show more masculine traits. We also find that once women enter entrepreneurship, they are equally able than man to translate their ability into outcomes for the firm.
Keywords: digit ratio; entrepreneurial ability; entrepreneurship; testosterone; women emancipation
JEL Codes: D22; L21; L25; L26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| lower 2D:4D ratio in women (J79) | lower entrepreneurial skills (L26) |
| lower women's emancipation (J16) | lower 2D:4D ratios in women (J79) |
| lower women's emancipation (J16) | lower participation of women in entrepreneurship (L26) |
| lower 2D:4D ratio in women (J79) | lower financial success (G29) |
| lower women's emancipation (J16) | fewer women than men are entrepreneurs (L26) |
| greater women's emancipation (B54) | higher proportion of women among entrepreneurs (L26) |
| success in entrepreneurship (L26) | equivalent ability to translate into firm outcomes (L25) |