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Allocation of Female Talent and Cross-Country Productivity Differences

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  • Lee, Munseob

    (University of California, San Diego)

Abstract

The disparities in cross-country labor productivity are greater in agriculture than in other industries. I propose that the misallocation of female talent across sectors distorts productivity. I formalize the theory by using a general equilibrium Roy model with gender-specific frictions. If female workers experience higher frictions in nonagricultural sectors, then female workers who are better skilled at non-agricultural jobs may select into agricultural sector. From a sample of 66 countries, I find that low-income countries have higher frictions in non-agricultural industries. By setting frictions to US levels, agricultural labor productivity increases by 4.3-7.6 percent, nonagricultural labor productivity decreases by 0.7-1.4 percent, and GDP per capita increases by 0.8-1.5 percent.

Suggested Citation

  • Lee, Munseob, 2023. "Allocation of Female Talent and Cross-Country Productivity Differences," IZA Discussion Papers 16530, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16530
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    References listed on IDEAS

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    5. Durlauf, Steven N, 1996. "A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
    6. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    7. Vollrath, Dietrich, 2009. "How important are dual economy effects for aggregate productivity?," Journal of Development Economics, Elsevier, vol. 88(2), pages 325-334, March.
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    More about this item

    Keywords

    misallocation; gender; occupational choice; productivity;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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