Determinants of Converging Gender Productivity: A Cross-Country Analysis

Most countries have experienced a substantial narrowing of the gender employment and wage gaps in recent decades. However, the determinants of the convergence in gender productivity, an important factor underpinning the gender wage gap, remain largely unexplained. This paper addresses this gap by exploring how technological advancements, from physical (brawn) to intellectual (brain) skills demand, and evolving social norms about women’s roles in societies have contributed to women’s changing work choices and productivity. Using panel data from 26 European countries over the period 2008 to 2020, I estimate the impact of technological factors and social norms on the productivity of women relative to men with a fixed effects specification. I find that changing skill requirements and skill-biased technical change have a significant and robust relationship with female labour productivity across countries. Moreover, in countries with higher levels of gender inequality, women’s productivity gains are also strongly related to reduced gender inequality.