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

Abstract

This paper examines the quantitative eects of gender gaps in entrepreneurship and workforce participation. We simulate an occupational choice model with heterogeneous agents in entrepreneurial ability. Gender gaps in entrepreneurship aect negatively both income and aggregate productivity, since they reduce the entrepreneurs' average talent. Specically, the expected income loss from excluding 5% of women is 2.5%, while the loss is 10% if they are all employers. We nd that gender gaps cause an average income loss of 15% in the OECD, 40% of which is due to entrepreneurship gaps. Extending the model to developing countries, we obtain substantially higher losses, with signicant variation across regions. JEL classication numbers: E2, J21, J24, O40.

The Impact of Gender Inequality on Economic Performance in Developing Countries

“…5 Simulation results based on calibrated theoretical models tend to explicitly consider general equilibrium effects and thus suffer the least from this particular problem (e.g. Cavalcanti and Tavares, 2016;Cuberes and Teignier, 2016).…”

“…For example, Klasen (2002) and Klasen and Lamanna (2009) There are many fewer empirical studies on the impact of gender gaps in employment and pay on economic growth. Cuberes and Teignier (2016) as well as Cavalcanti and Tavares (2016) each calibrate the macro models to specific country circumstances to assess the output costs of gender discrimination in labor markets. Cuberes and Teignier (2016) find that existing restrictions on female employment and entrepreneurship in their model generate an income loss of 27% in MENA, 19% in South Asia and about 10% in Europe.…”

“…It artificially reduces the pool of talent from which employees are drawn, thereby reducing the average ability of the workforce with negative growth consequences (e.g. Esteve-Volart 2009, Cuberes and Teignier, 2016). Such distortions would not only affect employees, but similar arguments could be made for self-employed in agricultural and non-agricultural sectors where unequal access to critical inputs, technologies, and resources as well as other barriers would reduce female participation there and/or lower the average productivity of these ventures, thereby reducing economic growth (see Udry, 1996;Cuberes and Teignier, 2016;Blackden et al 2007).…”

Las mujeres en el mercado de trabajo de las tecnologías

“…First, it highlights the gap between the increasing employment demand in the technology-related labour market and the low volume of graduates from the technological fields, where women are a minority group (Bystydzienski and Bird, 2006). Second, it also makes visible the social injustice linked to the exclusion of women from this economic sector that provides competitiveness, diversity and quality in employment (Cuberes and Teignier, 2015;Directorate-General for Internal Policies, 2015). Third, it shows the lack of equal participation 1 This project would not have been possible without funding from the ACUP (Association of Catalan Public Universities) and Fundación La Caixa for project 2014 ACUP00013, as well as the participation of the 'Observatori Dona, Empresa i Economia' (Women, Business and Economy Observatory) de la Cámara Oficial de Comercio, Industria, Servicios y Navegación de Barcelona (Chamber of Commerce, Industry, Services and Navigation of Barcelona).…”

Impact of Subsidies for Researchers on the Gender Scientific Productivity Gap: Evidence from Paraguay

“…Not only do women receive lower wages than men, they also are underrepresented in various occupations; work fewer hours, in general, than their male counterparts; and have less access to productive inputs (Cuberes and Teignier, 2016). 1 This scenario may play negatively on economic variables such as aggregate income, productivity and economic growth due to the underutilization of female human capital (Klasen and Lamanna, 2009;Cuberes and Teignier, 2016).…”