Home Production and Gender Gap in Structural Change

We document that the gender gap in non-agricultural work in developing countries exists primarily among rural married workers, not singles. Rural married women dedicate a much larger portion of time to home production compared to other groups, making them less likely to pursue non-agricultural employment. We extend a general equilibrium Roy model to incorporate the joint labor supply decisions of rural married couples, accounting for gender-specific labor distortions and entry barriers to non-agriculture. Calibrating the model to China, we find that within-household specialization among married couples greatly amplifies the effects of gender-specific labor distortions, and that changes in entry barriers to non-agriculture widened the gender gap in China between 2000 and 2010. Enhancing public services such as childcare facilities can effectively induce more married women to work in non-agriculture. Extrapolating our model globally, it explains a quarter of the variation in the gender gap across countries.