Why trust matters: female entrepreneurship and institutions inZambia

Female entrepreneurs in Zambia earn about half as much as men, and are concentrated in low-return industries such as food and apparel. A central barrier is lack of trust: women are less likely to collaborate with men to take advantage of larger opportunities for their business. Institutions matter: when dispute resolution is available and not gender-biased, women’s willingness to trust and collaborate rises. Experiments with real entrepreneurs show that access to adjudicators who are protective of the weak eliminates the gender trust gap and increases efficiency for both men and women. Strengthening accessible and trusted adjudication systems can help unlock women’s entry into higher-return activities.