Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305495 
Year of Publication: 
2024
Series/Report no.: 
EGC Discussion Papers No. 1108
Publisher: 
Yale University, Economic Growth Center, New Haven, CT
Abstract: 
The extent to which women participate in the labor market and have access to formal employment differs greatly across Indian states. In this paper we build on the methodology developed by Hsieh, Hurst, Jones, and Klenow (2019) to estimate the productivity consequences of such differences. Using rich microdata on occupational sorting and earnings, our theory allows to separately identify labor demand distortions (e.g., discrimination in hiring for formal jobs) from labor supply distortions (e.g., frictions that discourage women's labor force participation). We find that both demand distortions and supply distortions are negatively related to state-level economic development. Equalizing distortions across Indian states could raise state-level productivity by up to 15%.
Document Type: 
Working Paper

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