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Unpacking the Link between Service Sector and Female Employment: Cross-Country Evidence

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  • Coskun, Sena
  • Sengul, Gonul

Abstract

The surge in women's participation in the workforce has been a defining feature of advanced economies in recent decades. This paper explores cross-country variations in the relationship between service sector expansion and female employment. We estimate the elasticity of the female employment with respect to the services employment and uncover substantial differences across countries in how strongly the female share of working hours responds to service sector expansion. Our findings show that this elasticity is higher in countries experiencing stronger structural transformation and greater female employment intensity in business services. Furthermore, greater female employment intensity in business services is associated with a larger food and accommodation sector. These findings suggest that countries undergoing greater reallocation from industry to services experienced stronger increase in female employment as their expanding business service generated additional increase in food and accommodation sector, thereby pulling women more strongly to market work.

Suggested Citation

  • Coskun, Sena & Sengul, Gonul, 2025. "Unpacking the Link between Service Sector and Female Employment: Cross-Country Evidence," CEPR Discussion Papers 20102, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20102
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    File URL: https://cepr.org/publications/DP20102
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    Keywords

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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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