Differences in the labor market by gender and aggregate income

Miguel Angel Mascarua Lara
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Miguel Angel Mascarua Lara: Direccioon General de Investigacioon Economica, Banco de Mexico

Sobre México. Revista de Economía, 2023, vol. 1, issue 7, 84-114

Abstract: What are the effects on aggregate income of frictions in the labor market that affect women's participation and occupational choices? First, I develop an occupational general equilibrium model with heterogeneous agents that face gender-based idiosyncratic distortions. Second, I extend the model to include an endogenous distribution of formal and informal establishments to closely follow the distribution of Mexican establishments. Third, I use INEGI's National Survey of Occupation and Employment to calibrate the model and quantify gender-based frictions in the labor market in states and regions of Mexico and their effect on aggregate income. I find that aggregate income would increase, on average, by 4.3% without women's frictions to entrepreneurship and by 32.1% without frictions to entry and entrepreneurship.

JEL-codes: J16 J70 O1 O17 O4 O40 O5 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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