Structural Transformation and the Rise in Female Labor Force Participation Across the World

There are large gender differences in labor force participation, with men outnumbering women over four-to-one in some countries. These gaps declined significantly over the last half-century in most of the world. At the same time, most economies transitioned out of male-dominated agriculture into the more gender-equal services sector. Using cross-country census and sectoral employment data, this paper studies the connection between structural transformation and the rise of female labor force participation (FLFP). A robust relationship between the rise of services and the decline in male-to-female participation gaps emerges within countries and sub-national regions over time. Moreover, a calibrated structural transformation model with barriers to women participation can account for both cross-country and time variation in these gaps. Counterfactual exercises conducted for 151 economies suggest large potential welfare and output gains from decreasing barriers to FLFP—particularly among the most gender unequal countries