Dutch Disease in the Labor Market: Women, Services, and Industrialization

Van Pham

Review of Development Economics, 2009, vol. 13, issue 4, 560-575

Abstract: The light manufacturing export industries have been a springboard for sustained growth in many newly industrializing countries. Women have played an important role in those industries. The author presents a theory linking women's work and industrialization. The theory fits the observation that, in low‐growth developing countries, women work mostly in household services, while, in higher‐growth developing countries, women work in manufacturing. In the model, the existence of a services equilibrium or an industrialization equilibrium, or multiple equilibria, depends on an economy's endowment of land relative to labor.

Date: 2009
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