IDEAS home Printed from https://ideas.repec.org/a/ucp/jhucap/doi10.1086-683847.html
   My bibliography  Save this article

Aggregate Effects of Gender Gaps in the Labor Market: A Quantitative Estimate

Author

Listed:
  • David Cuberes
  • Marc Teignier

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.

Suggested Citation

  • David Cuberes & Marc Teignier, 2016. "Aggregate Effects of Gender Gaps in the Labor Market: A Quantitative Estimate," Journal of Human Capital, University of Chicago Press, vol. 10(1), pages 1-32.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/683847
    DOI: 10.1086/683847
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/683847
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/683847
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/683847?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrés Erosa & Tatyana Koreshkova & Diego Restuccia, 2010. "How Important Is Human Capital? A Quantitative Theory Assessment of World Income Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1421-1449.
    2. Dhritman Bhattacharya & Nezih Guner & Gustavo Ventura, 2013. "Distortions, Endogenous Managerial Skills and Productivity Differences," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 11-25, January.
    3. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    4. Abu-Ghaida, Dina & Klasen, Stephan, 2004. "The Costs of Missing the Millennium Development Goal on Gender Equity," World Development, Elsevier, vol. 32(7), pages 1075-1107, July.
    5. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, April.
    6. Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 1-45, February.
    7. Marianne Bertrand & Sandra E Black & Sissel Jensen & Adriana Lleras-Muney, 2019. "Breaking the Glass Ceiling? The Effect of Board Quotas on Female Labour Market Outcomes in Norway," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 191-239.
    8. Stephan Klasen, 2002. "Low Schooling for Girls, Slower Growth for All? Cross-Country Evidence on the Effect of Gender Inequality in Education on Economic Development," The World Bank Economic Review, World Bank, vol. 16(3), pages 345-373, December.
    9. Schultz, T. Paul, 1995. "Human Capital and Economic Development," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183410, International Association of Agricultural Economists.
    10. Gollin, Douglas, 2008. "Nobody's business but my own: Self-employment and small enterprise in economic development," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 219-233, March.
    11. Francisco Parro, 2012. "International Evidence on the Gender Gap in Education over the Past Six Decades: A Puzzle and an Answer to It," Journal of Human Capital, University of Chicago Press, vol. 6(2), pages 150-185.
    12. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    13. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    14. Esteve-Volart, Berta, 2004. "Gender discrimination and growth: theory and evidence from India," LSE Research Online Documents on Economics 6641, London School of Economics and Political Science, LSE Library.
    15. David Cuberes & Marc Teignier, 2014. "Gender Inequality And Economic Growth: A Critical Review," Journal of International Development, John Wiley & Sons, Ltd., vol. 26(2), pages 260-276, March.
    16. Stephan Klasen & Francesca Lamanna, 2009. "The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 91-132.
    17. Blau Francine D & Kahn Lawrence M, 2007. "The Gender Pay Gap," The Economists' Voice, De Gruyter, vol. 4(4), pages 1-6, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Cuberes & Marc Teignier, 2012. "Gender Gaps in the Labor Market and Aggregate Productivity," Working Papers 2012017, The University of Sheffield, Department of Economics.
    2. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    3. Miguel Angel, 2023. "Differences in the labor market by gender and aggregate income," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(7), pages 84-114.
    4. Henri Bello Fika, 2024. "Gender Gap in the Paid Economic Activity and Economic Growth in the CEMAC Zone," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 2329-2349, July.
    5. Paola Belingheri & Filippo Chiarello & Andrea Fronzetti Colladon & Paola Rovelli, 2021. "Twenty years of gender equality research: A scoping review based on a new semantic indicatorr," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-27, September.
    6. Dao, N.T. & Davila, J., 2015. "Gender inequality, technological progress, and the demographic transition," LIDAM Discussion Papers CORE 2015038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Faustine PERRIN, 2022. "Can the historical gender gap index deepen our understanding of economic development?," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 379-417, September.
    8. Stephan Klasen, 2006. "Pro-Poor Growth and Gender Inequality," Ibero America Institute for Econ. Research (IAI) Discussion Papers 151, Ibero-America Institute for Economic Research.
    9. Nguyen, Canh Phuc, 2021. "Gender equality and economic complexity," Economic Systems, Elsevier, vol. 45(4).
    10. Dahlum, Sirianne & Knutsen, Carl Henrik & Mechkova, Valeriya, 2022. "Women’s political empowerment and economic growth," World Development, Elsevier, vol. 156(C).
    11. Hyland,Marie Caitriona & Islam,Asif Mohammed & Muzi,Silvia, 2020. "Firms' Discriminatory Behavior, and Women's Employment in the Democratic Republic of Congo," Policy Research Working Paper Series 9224, The World Bank.
    12. Youssouf Merouani & Faustine Perrin, 2022. "Gender and the long-run development process. A survey of the literature [Rethinking age heaping: A cautionary tale from nineteenth-century Italy]," European Review of Economic History, European Historical Economics Society, vol. 26(4), pages 612-641.
    13. Taniya Ghosh & Sanika S. Ramanayake, 2021. "The macroeconomics of gender equality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1955-1977, April.
    14. Tewodros Makonnen Gebrewolde & James Rockey, 2017. "The Global Gender Gap in Labor Income," Discussion Papers in Economics 17/14, Division of Economics, School of Business, University of Leicester.
    15. Nguyen Thang Dao & Julio Dávila & Angela Greulich, 2021. "The education gender gap and the demographic transition in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 431-474, April.
    16. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    17. Ina GANGULI & Ricardo HAUSMANN & Martina VIARENGO, 2014. "Closing the gender gap in education: What is the state of gaps in labour force participation for women, wives and mothers?," International Labour Review, International Labour Organization, vol. 153(2), pages 173-207, June.
    18. Chaudhary, Ruchika. & Verick, Sher., 2014. "Female labour force participation in India and beyond," ILO Working Papers 994867893402676, International Labour Organization.
    19. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    20. Schober, Thomas & Winter-Ebmer, Rudolf, 2011. "Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?--A Comment," World Development, Elsevier, vol. 39(8), pages 1476-1484, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jhucap:doi:10.1086/683847. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JHC .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.