Ngai, L. Rachel and Petrongolo, Barbara (2014) Gender gaps and the rise of the service economy. CFM discussion paper series, CFM-DP2014-4. Centre For Macroeconomics , London, UK.
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This paper investigates the role of the rise of services in the narrowing of gender gaps in hours and wages in recent decades. We document the between-industry component of the rise in female work for the U.S., and propose a model economy with goods, services and home production, in which women have a comparative advantage in producing market and home services. The rise of services, driven by structural transformation and marketization of home production, acts as a gender-biased demand shift raising women's relative wages and market hours. Quantitatively, the model accounts for an important share of the observed trends.
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