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Distortions, infrastructure, and female labor supply in developing countries

German Cubas ()

European Economic Review, 2016, vol. 87, issue C, 194-215

Abstract: In this paper I document cross-country gaps between gross domestic product (GDP) per capita and GDP per worker. The gaps are driven mostly by a lower female labor force participation (LFP) in developing countries. Females began to participate more in the labor markets of these countries when more households acquired access to basic infrastructure and when distortive policies affecting the prices of household appliances were partially removed. I use a model of home production with endogenous labor force participation to account for these facts. I find that the prices of household appliances and access to infrastructure are quantitatively important in explaining cross-country labor supply differences.

Keywords: Female labor force participation; Developing countries; Infrastructure; Policy distortions; Household appliances (search for similar items in EconPapers)
JEL-codes: O11 O14 O33 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1016/j.euroecorev.2016.05.006

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European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

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