, women's years of schooling increase faster than men's, so that the gender gap in years of schooling declines. In this work … men and women choose years of schooling and hours worked. Women have a comparative advantage in services, and their hours … can reconcile the common decline of both gender gaps …

production decisions but also household-level schooling decisions. In turn, entrepreneurial schooling decisions impact firm …-invest in schooling. Frictions lower aggregate productivity because talent is misallocated across occupations, and capital … misallocated across firms. In addition, firm-level productivities are also lower due to distortions induced by the schooling …