Macroeconomic costs of gender gaps: the case of Mexico
Costos macroeconómicos de las desigualdades de género en un modelo con emprendimiento y producción doméstica: el caso de México
DOI:
https://doi.org/10.29105/ensayos44.1-3Keywords:
gender inequality, household production, factor misallocation, aggregate productivityAbstract
This paper uses the framework of Cuberes and Teignier(2018) to study the quantitative effects of gender gaps in
entrepreneurship and workforce participation in Mexico.
The focus on one specific country allows us to have detailed
information on men and women’s participation in household
production and their productivity in that sector. In line with
our previous research, the occupational choice model
predicts substantial losses in the country’s income per
capita. Gender gaps in the Mexican labor market, especially
in labor force participation, represent a 22% fall in total
output. Market output drops by 26.5%, while household
output experiences a five-fold increase. The presence of the
large gap in labor force participations implies that it is
important to introduce the household sector into the model
to take the production that takes place outside the market
sector into account.
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