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Abstract:

Journal Article
Gender gaps and the rise of the service economy
L. Rachel Ngai and Barbara Petrongolo
October 2017

American Economic Journal: Macroeconomics 9(4), 2017
DOI: 10.1257/mac.20150253
https://www.aeaweb.org/articles?id=10.1257/mac.20150253


JEL Classification: E24, J22, J16


Tags: gender gaps; structural transformation; marketization

This paper investigates the role of the rise in services in the narrowing of gender gaps in hours and wages in recent decades. We highlight the between-industry component of differential gender trends for the United States and propose a model economy with goods, services, and home production, in which women have a comparative advantage in producing services. The rise of services, driven by structural transformation and marketization of home production, raises women's relative wages and market hours. Quantitatively, the model accounts for an important share of the observed trends in women's hours and relative wages.

DOI: 10.1257/mac.20150253
https://www.aeaweb.org/articles?id=10.1257/mac.20150253