Structural transformation and female employment

Lead Research Organisation: London School of Economics and Political Science
Department Name: Centre for Economic Performance

Abstract

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Publications

10 25 50
 
Description Structural transformation and female employment 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact The rise in female participation to the labor market and the labor reallocation from manufacturing to services are two of the most remarkable stylized facts of the post-war period. Motivated by these facts, we propose a model of labor allocation across three sectors: goods, services and home production, in which women have a comparative advantage in the production of services, both in the market and in the household. Productivity growth is faster in market sectors than in home production, and, within the market, it is faster in manufacturing than in services. Goods and services are poor substitutes in consumption, giving rise to structural transformation. On the other hand, market services are good substitutes to home production, driving marketization. Realistic differences in productivity growth across sectors can predict an important share of the rise in women's market hours, the rise of services in the economy and the marketization of home production.
Year(s) Of Engagement Activity