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Marketization of Production and the US-Europe Employment Gap

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  • Freeman, Richard B
  • Schettkat, Ronald

Abstract

Women work much more in the US than in Germany and most other EU economies. We find that theUS¿German employment gap is not strongly related to cross-country differences in the level of pay orsocial benefits. The difference in employment is due to the different marketization of activities betweenthe two economies: German women work as many hours as US women when we consider time spentin household production as well as in market production.For instance, German women spend more time preparing meals while US women use take-outand restaurants more intensely. The organization of some social activities, such as schooling, and thedispersion of skills, as well as pay differences, affect the degree of marketization.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 63 (2001)
Issue (Month): 0 (Special Issue)
Pages: 647-70

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Handle: RePEc:bla:obuest:v:63:y:2001:i:0:p:647-70

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  1. Scharpf, Fritz W., 1997. "Employment and the welfare state: A continental dilemma," MPIfG Working Paper 97/7, Max Planck Institute for the Study of Societies.
  2. Lawrence F. Katz & Gary W. Loveman & David G. Blanchflower, 1995. "A Comparison of Changes in the Structure of Wages in Four OECD Countries," NBER Chapters, in: Differences and Changes in Wage Structures, pages 25-66 National Bureau of Economic Research, Inc.
  3. Nickell, Stephen & Redding, Stephen J & Swaffield, Joanna K, 2001. "Educational Attainment, Labour Market Institutions and the Structure of Production," CEPR Discussion Papers 3068, C.E.P.R. Discussion Papers.
  4. Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-08, May.
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