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Explaining the Gender Gap in Unemployment Across Countries

38 Pages Posted: 27 Jun 2007  

Yavuz Arslan

Bank for International Settlements (BIS)

Date Written: 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.

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

JEL Classification: E24, E60

Suggested Citation

Arslan, Yavuz, Explaining the Gender Gap in Unemployment Across Countries (June 27, 2007). Available at SSRN: or

Yavuz Arslan (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002

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