Abstract
Where social norms favor gender segregation, firms may find it costly to employ both men and women. If the costs of integration are largely fixed, firms will integrate only if their expected number of female employees under integration exceeds some threshold. We use the distribution of female employment to estimate the share of firms with binding integration costs. Using global survey data, we find evidence for these binding integration costs in the Middle East and North Africa (MENA) and South Asia but not in other regions. We also show that the intensity of gender segregation preferences is correlated with these integration costs in the MENA region.
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