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Zbwleibniz-Informationszentrum A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Bertrand, Marianne Article Economic consequences of gender identity NBER Reporter Provided in Cooperation with: National Bureau of Economic Research (NBER), Cambridge, Mass. Suggested Citation: Bertrand, Marianne (2014) : Economic consequences of gender identity, NBER Reporter, National Bureau of Economic Research (NBER), Cambridge, MA, Iss. 2, pp. 14-17 This Version is available at: http://hdl.handle.net/10419/103260 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu overlooked in research on trade because include G. J. Borjas and V. A. Ramey, (3) (2013), pp. 220–5; and “Untangling of a focus on wages as the sole channel “Foreign Competition, Market Power, Trade and Technology: Evidence from of trade adjustment. The consequences and Wage Inequality: Theory and Local Labor Markets,” NBER Working of Chinese trade for U.S. employment, Evidence,” NBER Working Paper No. Paper No. 18938, April 2013. In this household income, and government ben- 4556, November 1993, and Quarterly work, we juxtapose the effects of trade efit programs may contribute to pub- Journal of Economics, 110 (4) (1995), and technology on employment in U.S. lic ambivalence toward globalization and pp. 1075–110; and P. Topalova, “Trade local labor markets between 1990 and specific anxiety about increasing trade Liberalization, Poverty, and Inequality: 2007. Regional exposures to trade and with China. Evidence from Indian Districts,” NBER technology are uncorrelated, conditional Working Paper No. 11614, September on initial manufacturing employment. 2005, and in A. Harrison, ed., 5 D. Acemoglu, D. H. Autor, D. Dorn, 1 R. C. Feenstra, and G. H. Hanson. Globalization and Poverty, Chicago,IL: G. H. Hanson, and B. Price, “Import “Productivity Measurement and the University of Chicago Press, (2007), pp. Competition and the Great U.S. Impact of Trade and Technology of 291–336. Employment Sag of the 2000s,” MIT Wages: Estimates for the U.S. 1972– 3 D. H. Autor, D. Dorn, and G. Working Paper, September 2013; and 1990,” NBER Working Paper No. 6052, H. Hanson. “The China Syndrome: D. Acemoglu, D. H. Autor, D. Dorn, G. June 1997, published as “The Impact Local Labor Market Effects of Import H. Hanson, and B. Price, “Return of the of Outsourcing and High-Technology Competition in the United States,” Solow Paradox? IT, Productivity, and Capital on Wages: Estimates for the NBER Working Paper No. 18054, May Employment in U.S. Manufacturing,” U.S., 1979–1990,” Quarterly Journal of 2012, and American Economic Review, NBER Working Paper No. 19837, Economics, 114 (3) (1999), pp. 907– 103 (6) (2013), pp. 2121–68. January 2014, and forthcoming in 40; and L. F. Katz and D. H. Autor, 4 Two related papers include D. H. American Economic Review: Papers “Changes in the Wage Structure and Autor, D. Dorn, and G. H. Hanson, and Proceedings. Earnings Inequality,” in O. Ashenfelter “The Geography of Trade and 6 D. H. Autor, D. Dorn, G. H. Hanson, and D. Card, eds., Handbook of Labor Technology Shocks in the United States,” and J. Song, “Trade Adjustment: Worker Economics, Vol. 3A, Amsterdam: NBER Working Paper No. 18940, Level Evidence,” NBER Working Paper Elsevier Science, (1999), pp. 1463–555. April 2013, and American Economic No. 19226, July 2013. 2 Important precursors to our work Review: Papers and Proceedings, 103 Economic Consequences of Gender Identity Marianne Bertrand* An increasingly discussed explana- economics insights from social psychol- actions can in part be explained by a tion for why women and men experience ogy regarding an individual’s social iden- desire to conform with their sense of self. different labor markets is the existence tity and how it can influence behaviors Akerlof and Kranton apply their model and persistence of gender identity norms. and choices. These researchers define iden- to the concept of gender identity. In this Influential research by George Akerlof tity as one’s sense of belonging to one or case, the two relevant social categories are and Rachel Kranton1 has imported into multiple social categories. One’s identity those of “man” and “woman,” and these encompasses a clear view about how peo- two categories are associated with spe- * Bertrand is a Research Associate in ple who belong to that category should cific behavioral prescriptions which, if the NBER’s Programs on Corporate Finance, Development Economics, and behave. In their model, identity directly violated, will decrease utility. Labor Studies, and the Chris P. Dialynas enters the utility function: identity influ- Gender identity norms may help to Distinguished Service Professor of Economics ences economic outcomes because devi- explain why occupational segregation at the University of Chicago’s Booth School ating from the behavior that is expected by gender has been slow to disappear. of Business. Her profile appears later in this for one’s social category is assumed to Women may feel discomfort entering cer- issue. decrease utility. Hence, people’s economic tain professions, and men may feel dis- 14 NBER Reporter • 2014 Number 2 comfort if women enter these professions if the professions are strongly “gendered” .08 (for example, only men, not women, are bankers). This is related to Claudia Goldin’s pollution theory of discrimina- .06 tion,2 which also assumes that men derive utility from their work not just because of the wage they earn but also because of how their image is affected by where .04 they work and with whom they work. raction of Couples In Goldin’s model, men want to keep F women away from certain jobs because .02 broad female participation in those jobs would reduce the prestige men obtain 0 .2 .4 .6 .8 1 from working in them. The reduction in prestige in Goldin’s case is driven by the Share Earned by the Wife signals that might be sent to outsiders about the qualifications required to per- Figure 1: Distribution of Relative Income within Couples form these jobs if too many women enter them. In other words, Goldin’s model with more and more women disagree- than for fathers could be seen as another is closer to a statistical discrimination ing with the notion that husbands should manifestation of gender identity norms model while Akerlof and Kranton’s is be the breadwinners and wives should (for example, “a working mom cannot more directly reminiscent of a taste-based be the homemakers, and more egalitar- have a warm relationship with her child”) discrimination model. ian, with more and more women agreeing that have not fully adjusted to improving Another application is women’s labor with the notion that they are as capable educational and labor market opportuni- force participation. As long as there is a as men in the workforce, until the mid- ties for women. strong behavioral prescription indicating 1990s when these trends reversed. Raquel Another behavioral prescription that “men work in the labor force and Fernandez and Alessandra Fogli study often associated with gender identity is women work in the home,” gender iden- the labor force participation of second- that “a man should earn more than his tity norms could explain why women generation American women.6 They use wife.” With Emir Kamenica and Jessica have been slow to increase their labor past values of female labor force partici- Pan, I explore the possible manifestations force participation. Nicole Fortin uses pation in these women’s country of ances- of this gender identity norm in patterns of data from the World Values Surveys to try as cultural proxies for gender identity relative income within households, mar- assess how women’s sense of self relates to norms. Controlling for individual and riage formation, wives’ labor force par- their labor force participation in a sample spousal socioeconomic backgrounds, they ticipation, marital satisfaction, and the of OECD countries.3 She shows that the find that American women whose ances- division of home production. 8 Using U.S. social representation of women as home- try is from higher labor force participa- administrative data on individual income, makers and men as breadwinners appears tion countries work more. Spousal culture we show that the distribution of rela- quite predictive of women’s labor force also appears to matter in explaining the tive income within couples (wife income/ participation across countries. Fortin re- labor force participation of these women. (wife income + husband income)) exhib- examines a similar question in a single Motherhood has been shown to be its a sharp drop to the right of .5, for country, the United States, over a longer particularly disruptive to women’s labor example, when a wife starts to earn more time period (1977 to 2006).4 A more cen- force participation and earnings. With than her husband. This is shown in Figure tral motivation in this particular paper is Lawrence Katz and Goldin, I demon- 1, above. to provide an explanation for the slow- strate that much of the large gender gap In U.S.
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