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Explaining the Gender Gap in Unemployment Across Countries

Yavuz Arslan

BIS; Central Bank of Turkey

June 27, 2007

We model a mechanism which can generate most of the gender gap in unemployment observed in most of the OECD countries. The main components of the model are moral hazard, labor market institutions, and higher home productivity of women than men. The source of moral hazard is imperfect monitoring performed by the government. Higher home productivity of women makes them more likely to reject job offers and to stay unemployed which causes higher unemployment level for women. We find that each component has a quantitatively large effect on unemployment levels.

Number of Pages in PDF File: 38

Keywords: Unemployment, moral hazard, gender gap, home productivity, labor market institutions

JEL Classification: E24, E60

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Date posted: June 27, 2007  

Suggested Citation

Arslan, Yavuz, Explaining the Gender Gap in Unemployment Across Countries (June 27, 2007). Available at SSRN: https://ssrn.com/abstract=996865 or http://dx.doi.org/10.2139/ssrn.996865

Contact Information

Yavuz Arslan (Contact Author)
Central Bank of Turkey ( email )
Istiklal Cad No:10
Ankara, 0600
BIS ( email )
Centralbahnplatz 2
Basel, Basel-Stadt 4002
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