Allocation of Female Talent and Cross-Country Productivity Differences

Abstract

Abstract Cross-country disparities in labour productivity are more pronounced in agriculture than other sectors. I posit that the misallocation of female talent between sectors distorts productivity and formalise a general equilibrium Roy model with gender-specific frictions. If female workers encounter greater barriers in non-agricultural sectors, female workers who are better skilled at non-agricultural jobs may select into the agricultural sector. Analysis of data from sixty-six countries reveals that low-income countries have higher frictions against female workers in non-agricultural sectors. By aligning these frictions with those of the United States, agricultural labour productivity sees gains of 2.5%–7.6%, with GDP per capita rising by 0.5%–1.5% on average.