The service sector and female market work
AbstractThis paper develops a multi-sector model to: (i) quantify the feedback from women entering the labor force on the service sector size, and (ii) compute differences in hours worked by gender from taxes, structural change and female employment. Increases in female employment, due to rising wages and structural change, account for a sizable portion of services. Counterfactual results suggest that: (1) working women account for 32 percent of the rise in service employment; (2) using standard micro estimates of Frisch elasticities with two-person households, tax rates account for the majority of Europe-US differences in hours worked, and (3) subsidies to employment circumvent the tax effect on hours, but lead to welfare losses of 5 to 8 percent. The second result validates the relationship between tax levels and hours worked first proposed by Prescott (2004) without using large Frisch elasticities.
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Bibliographic InfoPaper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 492.
Date of creation: Jul 2010
Date of revision: Feb 2014
Technological progress; sectoral labor allocation; female labor supply; labor demand; taxation;
Find related papers by JEL classification:
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-DGE-2010-07-17 (Dynamic General Equilibrium)
- NEP-EEC-2010-07-17 (European Economics)
- NEP-EUR-2010-07-17 (Microeconomic European Issues)
- NEP-LAB-2010-07-17 (Labour Economics)
- NEP-MAC-2010-07-17 (Macroeconomics)
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- Rendall, Michelle, 2013.
"Structural Change in Developing Countries: Has it Decreased Gender Inequality?,"
Elsevier, vol. 45(C), pages 1-16.
- Michelle Rendall, 2012. "Structural change in developing countries: has it decreased gender inequality?," ECON - Working Papers 077, Department of Economics - University of Zurich.
- L. Rachel Ngai & Barbara Petrongolo, 2013. "Gender Gaps and the Rise of the Service Economy," CEP Discussion Papers dp1204, Centre for Economic Performance, LSE.
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