Policy Research Working Paper Productivity Gap between Women-and Men-Run Private Hotels in Georgia A Data Envelopment Analysis–Based MetaFrontier Analysis Mohammad AminNesma Ali Policy Research Working Paper11310 Abstract This paper makes an initial attempt to account for differ-ences in the technologies used by women- and men-runbusinesses, that is, technological “heterogeneity,” for betterunderstanding productivity differences between the twogroups. The paper applies meta frontier analysis to the effi-ciency of private hotels in Georgia estimated using the data percentage points. However, this superior performance isalmost fully countered by the inferior technology used bywomen due to the prevailing socio-cultural and economic environment. The findings also show that the impact of thetechnology gapon widening the productivity gap is muchstronger at low levels of efficiency than at higher levels (the “sticky floors” effect). No such evidence is found fortechnical efficiencyor overall efficiency. Thus, the existingliterature, which assumes technological “homogeneity,”provides at best an incomplete picture of the true nature ofgender-based productivity gaps and at worst, a misleading envelopment analysis methodology. The exercise allows dis- tinguishing between productivity differences conditional onthe available technology to each group(technical efficiency)and due to differences in the available technology(technol- The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about developmentissues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry thenames of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those Productivity Gap between Women- and Men-Run Private Hotels in Georgia:A Data Envelopment Analysis–Based Meta Frontier Analysis Mohammad Amin*and Nesma Ali** Keywords: Meta frontier analysis, gender productivity gaps, data envelopment analysis, hotelsJEL: C13, C14, D24, J16, L83, L89 *Corresponding author. Senior Economist, Enterprise Analysis Unit, DECEA, World Bank,Washington, DC. Email:mamin@worldbank.org. ORCID:https://orcid.org/0000-0002-9451- 3629**Economist,Enterprise Analysis Unit,DECEA,World Bank,Washington,DC.Email:nali4@worldbank.orgThe findings, interpretations, and conclusions expressed in this paper are entirely those of theauthors. They do not necessarily represent the views of the International Bank for Reconstructionand Development/World Bank and its affiliated organizations, or those of the Executive Directorsof the World Bank or the governments they represent. 1. Introduction The productivity difference between firms led or managed by women and men (henceforth, theproductivity gap) has been explored in several studies. A key assumption in all these studies is“homogeneity” of technology, which is that women and men managers have access to the sameproduction possibility set or technology. The assumption is at odds with the broader literature Technological “heterogeneity” occurs when decision-making units (DMUs) like firms,consumers, governments, and hotels can be split into groups and each group uses its own anddistinct technology. Group-specific technologies result from differences between groups inexternal or environmental factors confronting them, such as resource endowments, market size, typically, beyond the control of managers. In other words, thetechnology gapis determined by Women may lag men in technology due to several factors such as less favorable social andcultural norms (Fang et al. 2022), stereotyping and gender beliefs (Mui and Hill 2024, Yang andTriana 2019), poorer access to finance (Brush et al. 2018, Allison et al. 2023), poorer supply ofelectricity (Bue and Martínez-Zarzoso 2024), lack of necessary network needed to obtain criticalinputs and open new markets (see Azmat and Ferrer 2017, Fang et al. 2022), and weak rule of law Distinguishing betweentechnical efficiencyand thetechnology gapis important for at leasttwo reasons. First, these two sources of productivity or efficiency difference are very different interms of size, direction, and distribution across efficiency levels. To provide an example, we find Second, a fair comparison of the ability of women and men in running a business McAdam and the literature cited therein), women’s choice of business is often dictated by socialimperatives and their ascribed role as caregivers in the family, which restricts their productionpossibilitiesor technology and therefore productivity. Thus,the unconditional or overall The meta frontier analysis has been employed to analyze differences in productivity withinversus across countries (Huang and Fu 2013), time (Verschelde et al. 2016), sub-national regions(Barra et al. 2022), industries (Walheer and He 2020); differences i