The role of technology in reducing the gender gap in productivity

Abstract

A growing body of literature documents productivity differences between male- and female-led businesses in developing countries. This paper examines these gaps through the lens of technology adoption. Using novel firm-level data from the World Bank’s Firm-level Adoption of Technology surveys, we measure differences in productivity and technology adoption between male- and female-managed firms. The results show that female-managed firms tend to adopt similar levels of technology sophistication in general business functions, but they lag in the adoption of more advanced sector-specific production technologies. We also find that female-managed firms achieve higher productivity gains from adopting advanced technologies, partially offsetting initial gaps. An Oaxaca–Blinder decomposition indicates that differences in managerial quality, access to government support, and sectoral composition account for part of the adoption gap. These findings underscore the role of technology adoption as a potential channel for narrowing gender-based productivity differences in developing economies.