Abstract: This article uses the Cuberes and Teignier (2018) model to study the quantitative effects of gender inequalities on entrepreneurship and labor force participation in Mexico. Focusing on a single country allows us to obtain detailed information on men’s and women’s labor force participation in domestic production, as well as their productivity in this sector. Our model predicts significant losses in the country’s per capita income. Gender inequalities in the Mexican labor market, especially in labor force participation, represent a 22% drop in output. Market output falls by 26.5%, while domestic output increases fivefold. The presence of significant gender inequalities in labor force participation implies that it is important to include a domestic sector in the model to capture production that occurs outside the market.
Keywords: gender inequality, domestic production, aggregate productivity
JEL Codes: E2, J21, J24, O40
Cite as: Cuberes, D., & Teignier, M. (2025). Macroeconomic costs of gender gaps in a model with entrepreneurship and domestic production: the case of Mexico. Ensayos Revista De Economía , 44 (1), 63–84. https://doi.org/10.29105/ensayos44.1-3
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