The evolution of gender in the labour market: Inequality, (in)efficiency and stereotypes

Gender inequality is rife. Women make systematically different education choices from men, are under-represented in high-earning careers, and bear the bulk of the earning penalty from parenthood. Moreover, the disproportionate role women play in unpaid work in the home more than offsets the gap in paid work in the labor market, resulting in less leisure time and possibly lower life satisfaction.

Are women held back in the labour market because they are less willing to engage in competitive careers and/or they especially value caring for their children? In fact, research has shown that men and women are on average similar in their preferences and attitudes but face different career-family trade-offs. Besides valid arguments of social justice, differential entry barriers into certain professions raise obvious questions about the efficient allocation of women’s talent. While it would be tempting to conclude that family-friendly workplaces could provide a solution to women’s quest for the desired work life balance, there is a risk that this solution may further entrench gender segregation across firms and professions.

Conversely, research has established that, if women’s involvement in the labour market is shaped by prevailing gender norms (actual or perceived) around their primary role in raising children, progress towards gender equality requires redressing gender stereotypes via policy, education, and information interventions.

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