| Abstract |
Barriers that selectively limit women’s access to certain occupations constrain individual
potential and undermine productivity–but how large are their macroeconomic effects? In this
paper, we use a Roy model of occupation choice to derive a theoretically-founded, outcomes-
based measure of female labor market barriers that can be compared across countries and
time. This measure incorporates, but goes beyond, conventional gender wage gaps and is highly
correlated with established gender indices. Applying the framework to harmonized income
microdata for 43 diverse economies, we find that 2015 barriers for some major emerging markets
were similar to 1960s barriers in the U.S. Lowering their barriers to 2015 U.S. levels would yield
double-digit gains in per-capita market incomes and welfare, both by encouraging participation
and by raising productivity via an improved allocation of talent. This suggests that policies
aimed at reducing occupational barriers for women could be a powerful source of growth and
international income convergence. |