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Allocation of Female Talent and Cross-Country Productivity Differences

Munseob Lee

No 16530, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: misallocation; gender; occupational choice; productivity (search for similar items in EconPapers)
JEL-codes: O11 O13 O47 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2023-10
New Economics Papers: this item is included in nep-eff and nep-lab
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