Legal Origins and Labor Market Outcomes of Men and Women
59 Pages Posted: 9 Feb 2010 Last revised: 10 Mar 2011
Date Written: March 2011
The paper exploits variation in institutional environment and regulation of labor across legal origins to explain international differences in gender-gender income ratio, income inequality, labor force participation, unemployment, and selfemployment. Relative to common law countries, women have higher relative incomes in French (16%), Scandinavian (14%), and Post-socialist (15%) countries, but not so i German law countries. In Scandinavian and Post-socialist countries, female labor-force participation is about 15% higher relative to common law countries, whereas in French law countries, women exhibit lower participation and tend to be more often unemployed (4%) or self-employed (6%). Women are also more often self-employed in German law countries. A plausible interpretation is that in strong (past) active labor market policies may be driving results in Scandinavian and Post-socialist countries, whereas labor regulation in French law countries burdens marginal workers while their observed relative wages are pushed up.
Keywords: legal origins, regulation of labor, gender differences
JEL Classification: J16, K31, J23
Suggested Citation: Suggested Citation