Economics
Aggregate effects of gender gaps in the labor market: A quantitative estimate
Document Type
Article
Abstract
This paper examines the quantitative effects of gender gaps in entrepreneurship and workforce participation. We simulate an occupational choice model with heterogeneous agents in entrepreneurial ability. Gender gaps in entrepreneurship affect negatively both income and aggregate productivity, since they reduce the entrepreneurs’ average talent. Specifically, the expected income loss from excluding 5 percent of women is 2.5 percent, while the loss is 10 percent if they are all employers.We find that gender gaps cause an average income loss of 15 percent in the OECD, 40 percent of which is due to entrepreneurship gaps. Extending the model to developing countries, we obtain substantially higher losses, with significant variation across regions.
Publication Title
Journal of Human Capital
Publication Date
3-2016
Volume
10
Issue
1
First Page
1
Last Page
32
ISSN
1932-8575
DOI
10.1086/683847
Keywords
womens employment, gender equality, macroeconomics
Repository Citation
Cuberes, David and Teignier, Marc, "Aggregate effects of gender gaps in the labor market: A quantitative estimate" (2016). Economics. 57.
https://commons.clarku.edu/faculty_economics/57