Macroeconomic Costs of Gender Gaps in a Model with Household Production and Entrepreneurship

UB Economics Working Papers E16/356

24 Pages Posted: 19 Dec 2016

See all articles by David Cuberes

David Cuberes

University of Sheffield

Marc Teignier

University of Barcelona

Date Written: December 7, 2016

Abstract

This paper examines the quantitative effects of gender gaps in entrepreneurship and workforce participation in an occupational choice model with a household sector. Gender gaps in entrepreneurship affect negatively both income and aggregate productivity, since they reduce the entrepreneurs’ average talent and female labor force participation. We estimate the gender gaps for 37 European countries and we find that gender gaps cause an average market output loss of 11.5% when they are considered constant across talent levels. The loss in total output, which also includes household production, varies between 6.4% and 8.7%, depending on the household productivity parameter.

Keywords: Gender-specific occupational choice frictions, Entrepreneurhsip talent misallocation, Total output

JEL Classification: E2, J21, O40

Suggested Citation

Cuberes, David and Teignier, Marc, Macroeconomic Costs of Gender Gaps in a Model with Household Production and Entrepreneurship (December 7, 2016). UB Economics Working Papers E16/356. Available at SSRN: https://ssrn.com/abstract=2887252 or http://dx.doi.org/10.2139/ssrn.2887252

David Cuberes (Contact Author)

University of Sheffield ( email )

9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM

HOME PAGE: http://merlin.fae.ua.es/cuberes/

Marc Teignier

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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