The costs of occupational gender segregation in high-tech growth and productivity across US local labor markets

Abstract

Abstract Theories of endogenous economic growth propose that the exchange of information between workers with different knowledge facilitates innovation. In this study, we explore whether occupational gender segregation poses a barrier to endogenous growth by limiting the extent to which women and men workers exchange information, ideas and perspectives. Focusing on technology industries as a sector where information exchange plays a large role, we use error correction models to test for the potential long-term costs of occupational gender segregation on industry growth and productivity across US local labor markets from 2005 through 2019. Results indicate that occupational gender segregation stalls tech growth, while also hindering productivity. Conversely stated, the occupational integration of women and men provides a boon to growth and productivity in local tech sectors. As regions strive to be competitive in the new economy, those fostering collaboration between women and men will be better positioned to succeed.