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This article explores the determinants of corruption in transition economies of the postSoviet Union, Central-Eastern Europe, and Western industrialized states. We look in-depth at the East-West gap in corruption, and why entrepreneurs and small business owners become engaged in corrupt deals. Part of the answers lie in the country-specific formal and informal institutional make-up. The likelihood of engaging in corruption is influenced by the lower efficiency of financial and legal institutions and the lack of their enforcements. Also, viewing illegal business activities as a widespread business practice provides the rationale for entrepreneurs to justify their own corrupt activities. Moreover, closed social networks with family, friends, and national bureaucrats reduce the opportunism of the contracting party of the corrupt deal, thus providing breeding grounds for corruption.

Although scholars have long recognized the consequences of sex-based labor market segregation for gendered outcomes in conventional wage-and-salary employment, comparatively little is known about the implications for entrepreneurship. We call attention to implications stemming from manifestations at distinct levels of analysis, specifically to the differential structural positions that men and women are likely to occupy as employees and to the degree of sex-based labor market segregation in a country overall. We hypothesize that the gendering of labor market positions will have the first-order effect of reducing women’s likelihood of acquiring entrepreneurship-relevant resources, experiencing entrepreneurial career previews, and being exposed to industry opportunity spaces for launching new firms, which will have the second-order effect of lowering their start-up ease perceptions relative to men’s. We further suggest that this gender gap will widen in societies with more highly sex-segregated labor markets. Data from 15,742 employees in 22 European countries provide strong support for these claims. By demonstrating how pre-entry assessments of entrepreneurship are influenced by gendered employment experiences at the individual level and gendered labor market regimes at the country level, this study lays a foundation for further multilevel research on the relationship between institutionalized labor market practices and entrepreneurial activity.

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