How does the gender gap effect productivity in the work force?

Gender differences in access to economic opportunities are frequently debated in relation to gender differences in labor market participation. participation focus on productivity and earnings—for two reasons. First, a focus exclusively on labor force participation provides only a partial picture of women’s and men’s experience in the labor market. Far from being a simple decision about whether or not to join the labor force, participation in market work involves reallocating time across a variety of activities—a process that can be difficult and costly, particularly for women. And a focus solely on participation masks gender differences in the nature and dynamics of work. Second, despite significant progress in female labor force participation over the past 25 years pervasive and persistent gender differences remain in productivity and earnings across different sectors and jobs. Indeed, many women around the world appear to be caught in a productivity trap—one that imposes significant costs on women’s welfare and economic empowerment today and serious disincentives to invest in the women of tomorrow. Despite lower earnings and productivity, women are not worse farmers, entrepreneurs, and workers than men. We argue instead that gender differences in labor productivity and earnings are primarily the result of differences in the economic activities of men and women— although gender differences in human capital and in the returns to worker and job characteristics also play a role.