Allocation of Female Talent and Cross-Country Productivity Differences

40 Pages Posted: 21 Feb 2015 Last revised: 24 Jun 2016

See all articles by Munseob Lee

Munseob Lee

University of California San Diego

Date Written: June 1, 2016

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 non-agricultural sectors, then unproductive female workers will select into agricultural sector. From a sample of 69 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 20.6 percent and GDP per capita increases by 6.0 percent, primarily in low-income countries.

Keywords: misallocation, gender, occupational choice, productivity

JEL Classification: J24, J31, O11, O13, O47

Suggested Citation

Lee, Munseob, Allocation of Female Talent and Cross-Country Productivity Differences (June 1, 2016). Available at SSRN: https://ssrn.com/abstract=2567345 or http://dx.doi.org/10.2139/ssrn.2567345

Munseob Lee (Contact Author)

University of California San Diego ( email )

9500 Gilman Drive
La Jolla, CA 92093
United States

HOME PAGE: http://sites.google.com/site/munseob

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