This paper by the Leibniz InformationCenter for Economics examines how the gender of business-owners is relatedto the wages paid to female relative to male employees working in their firms. AlexanderKritikos, Mika Maliranta, Veera Nippala, and Satu Nurminote that female entrepreneurs (as much as female managers) need to be willingto play fair. Using Finnish register data and employing firm fixed effects, theauthors find that the gender pay gap is - starting from a gender pay gap of 11to 12 percent - two to three percentage-points lower for hourly wages infemale-owned firms than in male-owned firms. In several service sectorindustries, like ICT or business services, no or a negligible gender pay gapcan be found, but only when firms are led by female business owners. Businessesin male ownership maintain a gender pay gap of around 10 percent also in thelatter industries. With increasing firm size, the influence of the gender ofthe owner fades

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