Structural Change, Gender Gaps, and Educational Choice

Abstract

Men in low-income countries invest considerably more years in school than women. From low- to high-income countries, women's years of schooling increase faster than men's, so that the gender gap in years of schooling declines. In this work, I assess in how far this decline may be related to the fact that from low- to high-income countries, women's hours in formal work increase relatively faster than men's, too. I develop a general-equilibrium model of structural change in which men and women choose years of schooling and hours worked. Women have a comparative advantage in services, and their hours in formal work catch-up to men's as structural change gives rise to a formal service sector. Quantitatively, the model can reconcile the common decline of both gender gaps.