Gender Gap, Structural Change and Female Comparative Advantage: A Quantitative Analysis of China
(joint with Cassie Xiang)In Progress
Abstract: This paper presents a theoretical framework to reconcile the declining female labor force participation (FLFP) rate and the diverging gender gap in workforce participation in China with the expansion of the service sector and with the increasing female comparative advantage in the market sectors. We argue that two factors jointly shape the trajectory of FLFP rate and gender gap in labor force participation: (i) the interaction between structural change and female comparative advantage dynamics, and (ii) the change of female comparative advantage in the market sectors relative to home production. The framework predicts that FLFP rate drops when women have comparative advantage in diminishing sectors and vice versa, and that a rise in female comparative advantage in the market sectors narrows gender differences in labor force participation.
Recommended citation: Dordal i Carreras, Marc and Cassie Xiang. “Gender Gap, Structural Change and Female Comparative Advantage: A Quantitative Analysis of China.” In Progress (2023).