Marketization of Production and the US-Europe Employment Gap
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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