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Marketization of Production and the US-Europe Employment Gap

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Richard B. Freeman
Ronald Schettkat

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Abstract

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

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8797.

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Date of creation: Feb 2002
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Handle: RePEc:nbr:nberwo:8797

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This page was last updated on 2009-11-21.

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