Brown Bag - Faisal Sohail

Title: "Gender Gaps in Time-Use and Entrepreneurship"
Abstract: The prevalence of entrepreneurs, particularly low productivity non-employers, declines as economies develop. We show that this decline is more pronounced for women and that the gender gap in entrepreneurship reverses with development -- from an over representation of women in entrepreneurship in less developed economies to an under representation in more developed economies. This paper explores whether gender asymmetries in time devoted to non-market responsibilities can explain this pattern across countries. Given the flexibility afforded to entrepreneurs, constraints on available market time can be an important factor impacting the selection into entrepreneurship. Such time constraints are tighter for women particularly those in less developed economies. To quantitatively assess the importance of time constraints, we develop a general equilibrium model of occupational choice where selection into entrepreneurship is driven by discretionary time and ability. Using a calibrated version of the model, we find that observed gender gaps in time use account for a significant share of cross-country differences in  entrepreneurship, productivity and the firm size distribution. Our results highlight the importance of factors such as child-care policy or societal norms in not only influencing gender differences in labor market outcomes but also the quantity and quality of businesses in an economy.