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Gender gaps in the labor market and aggregate productivity

Cuberes, D. and Teignier, M. (2012) Gender gaps in the labor market and aggregate productivity. Working Paper. Department of Economics, University of Sheffield ISSN 1749-8368

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Abstract

The gaps between male and female outcomes and opportunities are present in several different dimensions and many countries, especially in developing ones. These gaps are likely to result in lower aggregate productivity because of an ine�fficient use of women potential. In this paper we examine the quantitative eff�ects of gender gaps in entrepreneurship and labor force participation on aggregate income. To do the analysis, we first present a simple theoretical framework illustrating the negative impact of gender gaps on resource allocation and aggregate labor productivity. We then calibrate and simulate the model to study the quantitative eff�ects of gender inequality. We show that gender gaps in entrepreneurship have important e�ffects on aggregate productivity and labor force gender gaps on income per capita. Specifi�cally, our model predicts that if all women are excluded from entrepreneurship, average output per worker drops by more than 10% and wages fall by even more, while if all women are excluded from the labor force, income per capita falls by almost 40%. Our cross-country analysis shows that gender gaps and income losses are quite similar across income groups but diff�er importantly across geographical regions, with a total income loss of 27% in Middle East and North Africa, a 23% loss in South Asia, and a loss of around 15% in the rest of the world.

Item Type: Monograph (Working Paper)
Copyright, Publisher and Additional Information: The Sheffield Economics Research Paper (SERP) series offers a forum for the research output of the academic staff and research students of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by a departmental editor. However, the contents and opinions expressed remain the responsibility of the authors. All papers may be downloaded free on the understanding that the contents are preliminary and therefore permission from the author(s) should be sought before they are referenced.
Keywords: gender inequality; entrepreneurial talent; factor allocation; aggregate productivity;
Institution: The University of Sheffield
Academic Units: The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) > Sheffield Economics Research Papers Series
Depositing User: Miss Anthea Tucker
Date Deposited: 03 Jul 2012 09:15
Last Modified: 18 Jun 2014 19:08
Published Version: http://www.shef.ac.uk/economics/research/serps/yea...
Status: Published
Publisher: Department of Economics, University of Sheffield
Identification Number: 2012017
URI: http://eprints.whiterose.ac.uk/id/eprint/74398

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