drivers of occupational and sectoral gendered segregation, is development enough?

“Gender, Institutions, and Development”

Drivers of Occupational and Sectoral Gendered Segregation, is Development Enough?

David Dingus

Göttingen, 11403109

[email protected]

April 9, 2015

DRIVERS OF OCCUPATIONAL AND SECTORAL GENDERED SEGREGATION, IS DEVELOPMENT ENOUGH?

Table of Contents

1. Introduction 1

2. Technical 2

2.1 Definitions 2

2.2 Indexes 3

3. Theories 4

3.1 Neoclassical Theory 4

3.2 Institutional and Feminist Theory 6

4. Hypotheses 9

4.1 Neoclassical Hypotheses 9

4.2 Institutional and Feminist Hypotheses 10

5. Empirical 11

5.1 Development (GDP) 11

5.2 Sectoral Change and Feminization 13

5.3 Female Labor Force Participation Rate (FLFPR) 13

5.4 Openness and Trade 14

5.5 Fertility 14

5.6 Education 15

5.7 Social Policies 15

5.8 Occupational and Sectoral Segregation 15

6. Closing Remarks 19

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Table of Figures

Figure 1. Average Change in ID 1999-2000 1

Figure 2. Occupational Segregation 2000 2

Table 1. Occupational and Sectoral Titles 3

Figure 3. Gender Differences in Time Use 6

Figure 4. Gender Differences in Time Allocation 7

Figure 5. Sectoral and Occupational Segregation across Development 16

Figure 6. Occupational Segregation across Countries 16

Table 2. Changes in Sectoral Indices within Countries over Time 18

Table 3. Sectoral Concentration Ratio Means 18

Table A1. Trends in Occupational Segregation 23

Table A2. Occupational Segregation controlling for Regional Factors 24

Table A3. Occupational Segregation and State Policies 25

Table A4. Occupational and Sectoral Segregation ID & IP 26

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Abstract

Occupational and sectoral segregation remain an issue through out the world. In this

paper we examine neoclassical, institutional and feminist theory to develop hypotheses for

the behaviour of the drivers of segregation. Empirically, we find the literature to be mixed

with differences varying across techniques and time periods. We find that these drivers

deliver different outcomes between occupations and sectors, with different regions returning

different results. Overall, segregation generally increases as industrialization begins and then

declines. However, this decline is not in line with neoclassical theory, which suggests that

discriminating firms are driven out of the market, but rather that firms and the culture adapts

by changing its preferences. Yet the rate of this change and the decline in segregation is much

slower than anticipated, suggesting that regional factors may be a contributing factor. The

variance across regions is in line with institutional and feminist theory, suggesting that there

are inherent biasses and discrimination present that will take time to unwind across

generations. Furthermore, while there is evidence to suggest that policy may help speed up

the process of this unwinding, it must be done carefully, taking into account regional specific

factors such as culture, level of industrialisation and history.

I. Introduction "No industry or country can reach its full potential until women reach their full potential. This is especially true of science and technology, where women with a surplus of talent still face a deficit of opportunity." — Sheryl Sandberg

Gender segregation across occupations and sectors not only harms the individual, but

society as a whole. Without gender equality, a country is not achieving its potential for

development and growth. Modernization theory suggests that as a country industrializes and

develops, key indicators of fertility, education and

income will improve as more women enter the labor

force. However, gender based occupational and

sectoral segregation persists across all countries and

levels of development. (World Bank, 2012)

In Figure 1, we can see differences in

regional trends with distinct interactions of a variety

of drivers within these regions. Overall, sectoral

segregation is decreasing in developed countries,

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Figure 1. Average Change in ID 1990-2000 (Anker, Melkas, & Korten 2003)


the Middle East and in Latin America, but it has

actually increased in transition economies and East

Asia. Furthermore, in Figure 2 we can see that

occupational segregation is high overall, but

particularly problematic in East Asia and the

Middle East. These regional differences suggest

that regional specific factors may play a larger role

in driving gendered segregation in the labor market.

(Anker, Melkas, & Korten, 2003)

In this paper we will examine the drivers of gender segregation more closely to

determine if there are any clear trends that would lead to policy implication in reducing

gender segregation. We will examine if gender segregation follows neoclassical theories and

self corrects due to market forces as development and income increase, or if intervention is

needed, as suggested by institutional and feminist theories. First, we will begin by covering

the definitions and common indexes used to measure gender segregation. Next, we will cover

the common theories of gendered segregation and their hypotheses. Finally, we will look at

the empirical evidence to draw conclusions.

II. Technical

2.1 Definitions

In this paper we will use definitions from the European Commission (2009), as there

are different interpretations in the literature. Occupational segregation refers to the

segregation of genders between different occupations, where there are more males in certain

occupations and more females in others. Occupational segregation can be further divided into

horizontal and vertical segregation. Vertical segregation refers to the under or over

representation of one gender at the top of a specific occupation or sector. Vertical segregation

is sometimes also referred to as hierarchical segregation. We can further expand upon this

definition and incorporate the “glass ceiling”. This is when women have a more difficult time

being promoted to a higher level as compared to men. On the other hand, horizontal

segregation refers to the under or over representation of one gender at a specific level

between occupations and sectors. More broadly, sectoral segregation focuses on gender

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Figure 2. Occupational Segregation 2000 (Anker, Melkas, & Korten 2003)


segregation between different sectors regardless of level or vertical standing. Refer to Table 1

for an example of sectoral and occupational titles.

2.2 Indexes

The Duncan Index of Dissimilarity, also referred to as ID, is a common Index used as

an indicator for horizontal segregation. The index sums up the difference between male

participation rates and female participation rates for a given sector i and then divides them by

2. It has a range of 0 – 1 in percentage terms, where 0 represents no segregation, and 1

perfect segregation. This ID number represents the percentage of the population that would

have to switch sectors to give an equal distribution across all sectors.

In this way the index does not take into account different female labor force

participation rates. In other words, even if all sectors are predominately male, there can still

be an equal distribution, so as long as there is an equal percentage of male and female

participation rates respective to their gender’s labor force participation rate. This index is also

heavily influenced by large sectors or occupations, in that if a large sector is highly

segregated, it would over shadow all of the less segregated smaller sectors. Conversely, if a

large sector were relatively equally distributed, it would also hide the segregation present in

smaller sectors. As such, the index has been reformulated numerous times to limit the effect

of these negative attributes, including “size standardized” versions, which eliminated the

negative effect of different size weightings. Nonetheless, the index is relatively common

given its easy understanding and interpretation. It is therefore the one with the most historic

data, and allows for an easy comparison over time.

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Table 1. Sectoral and Occupational Titles (Borrowman & Klasen 2015)


The Karmal and MacLachlan Index, also referred to as IP, is one such alternative

index which is not affected by the size of the sector occupation. The IP has a value from 0

to .5 with a similar interpretation as ID. The N represents the total employed population. The

major difference between ID and IP is that ID is a value without replacement, meaning that

female workers have to switch away from one sector and to another. Because IP uses N, it

allows for replacement, but this means that the values can change based on changes in the

female labor force participation rates. In other words, if more females enter the labor force as

is common in the development process and do so by entering an already female dominated

sector, the IP value would increase.

In summary, ID is susceptible to the size of sectors where as IP is susceptible to the

female labor force participation rate. By using both, we can compare results and get a more

complete picture. Nonetheless, neither of these indexes explains or shows changes in specific

sectors but rather the market as a whole. As such, some studies include another measure in

order to understand the dynamics of segregation between different sectors and occupations,

using what are referred to as Female to Male Concentration Ratios.

By calculating the concentration ration for each sector, we can see how individual

factors of education, fertility, openness, etc. affect each sector or occupation. In this way, we

can better understand the dynamics that drive gendered segregation on the micro level, and

avoid any dilution from the macro level as given by ID and IP.

III. Theories

3.1 Neoclassical Theory

Becker (1957) argues that due to biological differences, men and women should

specialize in different areas in order to maximize household utility. He expands upon this by

saying that since women rear children, they will spend more time in the home as a result. As

such, a woman should specialize in household production because she will be able to

multitask given that she can rear children while taking care of the home at the same time. It is

important to note that Becker is not saying that men are better at producing in the market than

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at the home, but because only a woman can rear children, she has a comparative advantage

over the man since she can rear children and produce at home while a man can only do one.

Polacheck (1981) presents a human capital theory where he argues that gendered

segregation begins because of different domestic responsibilities, and thus encourages

intermittent employment. Therefore, women generally seek out employment that will not

penalize them for being out of the labor market and in general can accommodate flexible

schedules, in exchange for lower wages.

“If life cycle labor force participation differs across individuals, and if the costs of these varying degrees of labor force intermittency vary across occupations, then individuals will choose those occupation with the smallest penalty for their desired lifetime participation” (Polachek, 1981, p. 144)

Croson and Gneezy (2009) find that because women are more risk averse and more

adverse to competition, they are less likely take on jobs with more risk. These higher risk

jobs often pay more and also offer greater and faster chance of promotion. In sum, because of

female preferences, we see higher gendered segregation in the labor market.

As such we should see women specializing in jobs in the areas of education and

services, and taking on part-time instead of full-time work. This creates a sort of “taste for

discrimination” by employers and we see an increase in gendered segregation as a country

begins to develop and more women begin to enter the workforce. (Becker 1957) As the

economy becomes more advanced, Becker argues that these employers with a “taste for

discrimination” will be pushed out of the market due to increasing competition. Essentially,

employers who do not discriminate will higher workers with a higher level of human capital

and be able to produce superior products at lower prices. Making those employers who

discriminate less competitive, and their market share erode over time, driving them out of the

market.

To summarize, neoclassical theory suggests that as a country begins to industrialize it

is optimal for women to specialize in household production and shift into occupations and

sectors that compliment their skills and can accommodate their schedules, thus allowing them

to continue their household responsibilities. Over time, as an economy becomes more

advanced and international competition increases due to an increasing export sector, the

demand for female laborers will increase, thus driving out these discriminating firms out of

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the market. In essence, competition will

decrease gender segregation in the labor

market overt time without intervention.

In Figure 3, we can see that

generally in more developed countries,

women spend more of their time

engaged in market activities and less of

their time in housework and care.

Nonetheless, women spend the majority

of their time in housework, conforming

to Becker’s argument. However, upon

closer examination we see that while

there is an overall trend for market

activities to correlate with development

there are a few exceptions. In fact,

Cambodia has the least differences

between the two, hinting at other factors

that are not accounted for by neoclassical

theory.

3.2 Institutional & Feminist Theory

Institutional theory argues for the existence of two labor markets, a “primary” market

and a “secondary” market. (Reich, Gordon & Edwards, 1973) Jobs in the “primary” sector

can be described as those which are more desirable due to higher wages and job security,

better working conditions, and greater opportunities for advancement as compared to jobs in

the “secondary” sector. (Borrowman & Klasen, 2015) This division of “primary” versus

“secondary” market leads to both horizontal and vertical segregation. According to Anker

(1998) this is because of a “male breadwinner bias” which prioritizes men for these

“primary” jobs since they are generally viewed as having to provide for the family; whereas a

woman’s income is seen as supplemental or secondary to the man. Thus, women will receive

lower investment in human capital and have a lower participation rate in the labor force; and

when a woman does decide to participate, she will do so with fewer options, lower wages and

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Figure 3. Gender Differences in Time use (World Bank 2012)


less chance for investment. (Borrowman & Klasen, 2015) This “breadwinner bias” thus leads

to vertical segregation.

Similar to neoclassical theory, Reich, Gordan & Edwards (1973) argue that under

institutional theory women are generally paid less than men because they seek jobs that

require a “serving mentality”. This in turn leads to women seeking jobs in specific sectors

deemed appropriate by these institutions, fostering horizontal segregation. Furthermore, they

argue that society and the cultural norms encourage this behavior, both by their immediate

family and their schooling. The difference between neoclassical and institutional theory is

that the institution themselves, not just the household that perpetuate discrimination and

causes gender segregation in the labor market.

Feminist theory goes on to explain this preference for discrimination that can be

found both under neoclassical and institution theory. Feminist theories argue that cultural and

regional specific properties lead to a socialization of what a women’s role is and how she

should be invested in. Furthermore, she will choose a similar path for her own female

children and society as a whole will reinforce these ideas by choosing only to offer certain

jobs to men and others to women. In this way we see a self-reinforcing feedback loop, which

can only change over generations. (Borrowman & Klasen, 2015) In figure 4 we can see

evidence of these established

cultural norms; although women are

participating more in the work force,

they are still having to do most of

the work in the home, and while

men’s role in the home is increasing,

it is not increasing at the same rate

of women’s work in the market.

(World Bank, 2012)

One may argue that a reason for the observed gender segregation may be due physical

capabilities. However, Baron and Bielby (1986) find that the majority of the segregation is

not due to physical capabilities, but other factors consisting of regional factors and evidence

of an inherent gender bias and discriminatory practices. These findings are in line with

feminist theories, which argue that horizontal segregation is heavily affected by cultural

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Figure 4. Gender Differences in Time Allocation (World Bank 2012)


norms, and that these regional factors account for a large portion of segregation between

manual and non-manual sectors. (Charles & Grusky, 2004) Moreover, employers and

employees reinforce these cultural norms in their hiring practice and internally by promoting

those who fit their idea of what an employee should look like. According to Golding (2002)

employees may actively seek to ensure that the current system of discrimination remains in

place, which is referred to as the “pollution” theory. Finally, feminist economic theories also

form a “queuing” theory in which employers rank their employees based upon discriminating

characteristics that they tie to their benefits package (salary, benefits, promotions). This

system thus leads to the “glass ceiling” in which employees that fulfill certain characteristics

receive promotions over others with similar merit because they do not fulfill these constraints

of gender, race, or religion. (Golding, 2002)

Bergman (1973) developed a theory of gender discrimination based on employer

choices. She argues that discrimination creates barriers to certain jobs, thus forcing women

into predominately female occupations. As female labor force participation increases the

supply of labor in these female-dominated occupations will increase, causing wages to fall

and male dominated occupation to see increasing wages. In summary, she argues that it is

discrimination that forces women into particular sectors and occupations that causes gendered

segregation.

Institutional and feminist theories suggest that market intervention is necessary to

overcome the biases and discrimination present in a country. Anker (1998) expands upon the

argument for intervention, arguing that gendered segregation in the labor market is heavily

influenced by the level of socioeconomic development present in a country, but differentiates

between the structures of this segregation and the level. Where socioeconomic policies can

change the structure, the level of segregation is influenced by other issues, such as the level

of industrialization. Implying that policies will have different outcomes for different countries

based on regional specific factors, such as culture and the level of industrialization.

Nonetheless, Chang (2004) argues that policies that target women may be even more

important and have a greater impact than they do in developed countries. She describes two

types of polices, one that promotes programs which aid women in their child bearing

responsibilities, and another that directly targets discriminatory practices against women

based on their gender. She notes that while these policies may have negative effects in some

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countries, they may have a positive effect in the long term, especially if combined with other

policies and especially for developing countries.

Overall, institutional and feminist theory argues that there are inherent gender biases

and discriminatory practices present in the labor market, specific to their respective

respective region and they lead to gender segregation. While they may break down over time,

it may take some time for these barriers and cultural norms to change. As such, some suggest

that intervention is needed to speed up the process, but each intervention must be carefully

matched with the targeted region.

IV. Hypotheses

4.1 Neoclassical Hypotheses

Neoclassical theories predict decreasing levels of gender segregation in the market

due to supply and demand factors. As development increases, the level of female education

and female labor force participation will increase. Becker (1957) predicts a “taste of

discrimination” where women would predominantly work in non-discriminatory firms. While

it predicts segregation between employers, it makes no predictions about occupational or

sectoral segregation. Increasing international competition in the export-oriented sector will

further compound these factors. This also implies that increasing international competition in

the trade sector through trade liberalization processes would lead to less gender segregation.

Furthermore, Jacobs (1989) and Blau, Brinton, & Grusky (2006) argue that much of the

initial segregation exists due to differences in preferences and differing level of investment in

human capital. Over time as the country becomes more developed we should see more

convergence of these factors and therefore increasing education should lead to decreasing

amount of gender specific segregation. Human capital theory also adds, that industrialization

may lead to higher segregation initially, but then decrease across the development process.

(England, 1973)

Overall, neoclassical theories predict an inverse relationship between segregation,

development, export propensity, female labor force participation, and female education as a

proxy for human capital. Borrowman & Klasen (2015) point out that structural changes in the

countries market structure as it develops and moves away from agriculture to an industrial

and service based economy, should lead to less gendered segregation in the labor market,

although initially segregation will increase according to human capital theory.

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4.2 Institutional and Feminist Hypotheses

Institutional and Feminist theory hypothesize that gendered segregation will not be

dismantled by development, because it is driven by deeply rooted cultural factors, which are

perpetuated by institutions and gender biases and inherent discriminatory practices. Under

these theories there is not necessarily any tendency for development under capitalism to

foster gender equality in the labor market, both for domestic and international production.

Instead these theories suggest that if the segregation is rigid enough, increasing female labor

force participation may even increase segregation. Moreover as human capital, i.e. education,

become more equal in its distribution it may take quite some time for gender segregation to

decrease as these jobs and divisions exhibit a “stickiness” or “path dependency”. (Carraway,

2007) Carraway (2007) also argues that when inroads are made there is a tendency to

feminize jobs in a way, which does not foster labor force integration. Borrowman and Klasen

(2015) note that the development path may actually foster and correlate with gendered market

segregation. In sum, women will seek occupations with a low penalty and men a high

penalty.

Institutional and feminist theories hypothesize that structural adjustments will lead to

higher sectoral and occupational segregation. They also add that vertical segregation may be

attributed to a gender bias in the work place where men seek to protect their jobs and

maintain the status quo, thus resulting in a “glass ceiling”. Furthermore, the “male

breadwinner bias” will lead to higher level of vertical segregation. Institutional and feminist

theory suggest that these biasses can be overcome by female-targeted social policies. They

hypothesize that maternity leave and anti-discrimination policies would lead to less

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Neoclassical Hypotheses:

• As GDP increases, we expect segregation to decrease, since discriminating firms are driven out of the market

• Segregation will increase initially as industrialization begins • As FLFP increases segregation will increase • An increase in education will lead to a decrease in segregation • As an economy becomes more open and trade makes up a larger proportion

of GDP, segregation will decrease from international competition • A decrease in Fertility will also lead to a decrease in segregation


segregation in the work place, because they remove the risk a women has of losing her job

from having children or forcing her to choose between children and a career.

V. Empirics

5.1 Development (GDP)

There have been numerous studies on the key drivers of occupational and sectoral

segregation showing mixed results. Surprisingly, many have found a positive relationship

between development measured in GDP per capita and gender segregation. As a result, a

variety of different methods have been used to try and explain this discrepancy between

theory and empirics. Jacobs & Lim (1992) use longitudinal data to try and explain this result,

but still find a positive and highly significant relationship, though it is relatively small.

Furthermore, using their longitudinal data and controlling for sector size, they find overall

that segregation has decreased slightly across individual countries, see Table A1 for a list of

examples. Furthermore, they reject any notion of a feminization-U hypothesis in that they see

poor countries with declining segregation, while richer continue to increase.

Using more updated data, Ball (2008) attempts to control for regional specific factors

to explain this positive relation. In Table A2 we see that she too finds a positive correlation

between income and segregation that is also highly significant. In particular we see that

segregation is highest in the Middle East, North Africa, and previous socialist countries and

are significant. Overall, Ball (2008) arrives at many of the expected signs, except showing

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Institutional and Feminist Hypotheses:

• Gender bias at the institutional level creates a dual market structure leading to sectoral segregation

• Cultural norms reinforced by institutions create a “serving mentality” leading to horizontal and sectoral segregation

• “male bread winner” bias will lead to vertical segregation • Cultural norms create division between manual and non-manual labor

leading to sectoral segregation • Gender biases lead to less employment opportunities and occupational

segregation: “pollution theory” • “queuing theory” causes more vertical segregation and a glass ceiling • Segregation will take time to dismantle due to the stickiness of regional

specific factors • Pro-maternity leave and anti-discrimination policies lead to less segregation


that as industrialization begins we see increasing segregation, and above all that regional

differences make up a large proportion of the differences in segregation across countries. She

notes that while segregation and income are increasing, segregation is doing so at a

decreasing rate and provides evidence of a feminization U-Hypothesis. While a positive

correlation between GDP and gendered segregation may seem counterintuitive, it does

conform to neoliberal theory and the hypothesis that industrialization leads to higher

segregation initially that then tappers off. However, the time it takes for segregation to

decrease is much longer than the theory would suggest, and only visible using longitudinal

data. This suggests that other factors, and in particular regional factors may have a larger

impact on segregation than an increase in income alone, and that feminist and institutional

theory may be correct in explaining gender segregation given the general prevalence of

segregation and the time it takes to decline.

Borrowman and Klasen (2015) argue that the data used by the majority of these

studies is outdated. Using more recent and complete data they determine that there is no

direct correlation between development and segregation that is significant. These findings are

consistent with findings from World Bank (2012) that development alone is not strong

enough to overcome segregation. While not significant, their coefficients are positive and in

line with institutional and feminist theories, thereby underscoring the complexities in these

drivers and that development alone will not fix the issue.

“There are a multitude of forces working to increase and decrease gendered segregation throughout the development process, many of which are crystallized in institutions and social norms that have dynamic interactions with the very process of development. Thus we cannot rely on economic forces alone to erode entrenched patterns of gendered labor market segregation.” (Borrowman & Klasen, 2015, p. 23)

If development were enough, we would expect to see development policies lead to

increasing incomes and less segregation. SENAI is a development program that was designed

to provide vocational training in Brazil to help train the labor force and foster a path for

development and growth. However, the program was implemented without considering the

effects on occupational gender segregation, and thus there was no included component to

target women. Barria and Klasen (2014) have found that the program has led to an increase

occupational and sectoral gender segregation and argue that the negative effects of SENAI

serve as an example that development policies alone are not enough to reduce segregation,

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but in fact can even worsen it. Overall, our empirical evidence is mixed on the relationship

between development and segregation and highlights the importance of regional specific

factors.

5.2 Sectoral Change and Feminization

As the development process takes hold we generally observe the service sector grow,

as women move away from agriculture and into the labor force, seeking to provide these

services that they once provided in the home on the market. (World Bank, 2012) Charles

(1992) emphasizes the importance of the service sectors as those are found to be mostly

female dominated since these types of jobs offer the flexibility and characteristics women

seek. Thus we would expect to see development lead to a larger service sector and higher

labor market sectoral gender segregation. That being said, neither Semyonov & Jones (1999),

nor Chang (2004) found the level of gendered segregation to be significant in comparison to

the size of a country’s service sector. However, Charles (1992) found a positive relationship

for industrialized countries. In all, empirical evidence does not show a strong case for

sectoral change to lead to an increase in segregation in the economy as a whole. This

underscores the importance of other regional factors, and that they may have a stronger effect

on the outcome of gender segregation in the labor market.

5.3 Female Labor Force Participation Rate (FLFPR)

Female labor force participation may cause either more or less segregation and it

depends highly on those regional specific factors and how deeply rooted they are. Carraway

(2007) examines the manufacturing sector in Indonesia and found that increasing labor force

participation there had mixed results, and much less of a positive impact as anticipated as the

factors contributing to the segregation proved to be much more resilient. For the most part,

many have found an inverse relationship between FLFPR and gendered segregation

including: Jacobs and Lim (1992); Anker (1998), Semyonov and Jones (1999), Meyer (2003)

and Ball (2008). Yet, Chang (2004) found the relationship to be insignificant and Swanson

(2005) even found the relationship to be positive. Chang (2004) sights the “culling effect” as

an explanation for her results. She argues that women are in less high status occupations

when the percent of FLFPR increases and thus cancels out any gains. In all, when the FLFPR

increases, we can expect to see an increase in segregation, as women will generally enter

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occupations at the bottom end and sectors for which they have the skills, and those that can

accommodate their needs. However, regional factors may be able to cancel out this effect.

5.4 Openness and Trade

Extending these finding to the openness of the economy, Borrowman & Klasen

(2015) note that there are both push and pull factors at stake and that while the female labor

force has been drawn in, they have been particularly focused on occupations and sectors

which offer flexible time schedules and lower wages. (Standing,1999) This would suggest a

positive relationship between trade liberalization and gender segregation in the labor market.

Seguino (2000), Berik (2004), Carraway (2007) and Meyer (2003) found an inverse

relationship between the export share of GDP and occupational segregation and Chang

(2004) and Borrowman & Klasen (2015) have found no significant relationship. On the other

hand, Ederington, Minier & Troske (2009) found in their study of Colombia that as the

market structure shifted to a more trade based system, there was an increase in labor force

participation most of which focused on the export sector, thus partially confirming the human

capital hypothesis. However, they found that unlike Becker’s argument that says that

discriminating firms will be driven out of the market, Ederington, Minier, Troske (2009) find

that firms are forced to adopt. Implying that while an increasing trade sector may bring more

women into the work place and increase segregation initially, it will also force the

preferences of firms to change and discriminate less. Although the evidence is mixed, many

studies have found openness to correlate with less segregation; however, regional specific

factors may play a larger role, leaving the labor market unchanged. More importantly, there is

evidence of insertional and feminist theory given that firms seem to change their preferences

and discriminate less as competition increases from trade. This implies that occupational

gender segregation may not be because of the choices of women as suggested by neoclassical

theory, but that there are inherent gender biasses and discriminatory practices present in the

labor market as suggested by feminist and institutional theory.

5.5 Fertility

We expect increased fertility to correspond with higher segregation due to intermittent

labor force participation as child care responsibilities have to be balanced with work and

many male dominated positions are not necessarily supportive of family responsibilities.

Results may be mixed because as a country becomes more developed there may be maternity

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leave policies, whose costs could be borne by the state or the employer. If borne by the

employer, it could deter the hiring of women and lead to further occupational and sectoral

segregation. Several studies have confirmed an overall positive relationship between fertility

and segregation such as Jacobs and Lim (1992), Anker (1998) and Ball (2008). Where as

some have found the relationship to be insignificant, meaning that other factors were most

likely important such as in studies by Chang (2004) and Swanson (2005). In sum, while there

is evidence to support that decreased fertility corresponds with less gender segregation, some

evidence suggests that regional specific factors and other drivers may be important.

5.6 Education

Neoclassical theory argues that most of the differences we observe in segregation are

due to differences in human capital, and thereby education. As such, we would expect that as

education levels increase, that the differences in human capital would decrease and gender

segregation to decrease. On the other hand, if these differences are driven by discrimination

as argued by institutional and feminist theory, then increases in education should have little

effect on occupational gender segregation. Semyonov & Jones (1999), Meyer (2003), Chang

(2004), and Swanson (2005) all found no significant relationship, thus leading to a conclusion

that most of these differences may be attributed to institutional and feminist theories. One

study by Jacobs and Lim (1992) show a positive relationship; however, using longitudinal

data the relationship also becomes negative. Overall, the majority of studies show that the

hypothesis from neoclassical theory on education and human capital does not hold, but

instead shows evidence of the institutional and feminist theories in that segregation is largely

driven by inherent gender biases deeply rooted in the culture and its institutions.

5.7 Social Policies

Given the prevalence and impact of regional specific factors on gendered segregation,

one would expect policies targeted at women, such as pro-maternity leave and anti-

discrimination policies to reduce gender segregation, but those outcomes are mixed as well.

Chang (2000) finds that maternity leave has a negative effect on market segregation, while

anti-discrimination policies can actually increase segregation. However, she points out that

these policies have different effects based upon the exact occupation and sector being studied.

This does not mean that these policies are bad and should be avoided, but rather studied more

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closely and modified according to the country in order to achieve the desired outcome and

minimize the negative effects.

5.8 Occupational and Sectoral Segregation

Figure 5 compares occupational and sectoral segregation between 3 countries in

different stages of development. We can see that while there is correlation between sector and

occupational segregation, there are differences, with no clear trends. Furthermore, in Figure 6

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Figure 5. Sectoral and Occupational Segregation across Development (World Bank 2012)

Figure 6. Occupational Segregation across Countries (Chang 2004)


we can see the results from Chang (2004), where she highlights occupational segregation

across developing countries. While there are clear divisions overall, there are variations. We

can see that there are trends between dominate female occupations in service, sales, and

clerical, and dominate male occupations in production and managerial. However, there is not

only variation in the level of gender segregation observed across occupations, but also

country specific differences, with some returning the opposite results of the observable

trends. In this section we will more closely examine the drivers of occupational and sectoral

segregation and differentiate their effects in more detail.

In table A3 Chang (2004) takes a closer look at the effects of these drivers across

occupations. When considering these drivers on the occupational level, many lose their

significance or have the opposite effect. For example, maternity leave policies decrease

segregation for professionals, clerical, sales and service occupations, but many are

insignificant. Furthermore, we see that maternity leave policies increase segregation for

production and managerial occupations. Most surprisingly, she finds that anti-discrimination

legislation increases segregation overall, specifically in clerical, sales, and service

occupations, while decreasing segregation in professional, managerial and production

occupations.

However, she is quick to point out that there are distinctions to be made. First, anti-

discrimination policy can lead to less segregation when applied to white-collar jobs and lead

to higher-level promotions than without the policy. On the other hand, she argues that anti-

discrimination policy can increase segregation in the service and commerce because women

generally seek positions that allow them to work part-time or with flexible schedules. In this

way, more women, especially those with children who may stay at home, are entering the job

market than otherwise would. These results underscore the inherent complexities underlying

occupational and sectoral segregation, and stress the importance of regional specific factors,

noting that while they may have an overall trend in one direction, we may observe the

opposite effect on sectoral or occupational segregation.

Borrowman and Klasen (2015) use the most up-to-date data to look at the differences

in occupational and sectoral segregation. They use both ID and IP indexes in their analysis.

ID allows for comparison with previous data to determine if there has been any improvement

over time. On the other hand, IP has too little data to compare over time, but helps to create a

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more comprehensive picture. They find significant differences across regions. For example,

Borrowman & Klasen (2015) find that Latina America has higher gender segregation in both

industries and occupations, whereas Asia and Africa are at the lower end for both.

Borrowman and Klasen (2015) also use concentration ratios to determine the impacts

of specific drivers across occupations and sectors. They find that while the level of

segregation has decreased, there is increasing sectoral and occupational segregation in the

majority of countries, albeit at a lower level as seen in Table 2.

They also include concentration ratios shown in Table 3 to distinguish the effects on

individual sectors. Using the concentration ratios (as the dependent variable) they found that

commerce and mining and construction to be mostly male dominated, and that development

usually caused a decrease in the number of women in manufacturing, but and increase

presence of females in commerce and service areas.

Furthermore, they tried to capture some of the regional variance by also including

variable for different age groups and urban vs. rural workers. Notably, they found that in

urban areas, export was slightly positive for women in manufacturing, which supports the

hypothesis of female labor force feminization with development and the expansion of the

export sector. Overall, the commerce sector seems to be the most female dominated sector.

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Table2. Changes in Segregation Indices within Countries over Time (Borrowman & Klasen 2015)

Table3. Sectoral Concentration Ratio Means (Borrowman & Klasen 2015)


On table A4 we can observe that Borrowman & Klasen (2015) also find that drivers

can have different implications between occupations and sectors. For example, the fertility

rate has a negative relationship for sectors, though insignificant, while having a significant

and positive effect on occupations in rural areas; it is a similar case for the FLFPR, and the

services employment share.

Borrowman and Klasen (2015) find an inverse relationship for sectors, but a positive

sign for occupations, hinting towards a changing employment structure where sectoral

employment is more equal, but occupational segregation is increasingly more segregated. A

positive relationship correlates with segmented labor market theory, queuing and pollution

theory, and with different gendered constraints and preferences. They also find that education

returned with positive coefficients for all sectors, which is counter intuitive. This does not

necessarily mean that more education leads to greater segregation, but that other variables are

having more influence. Overall, education measured both in gender ratio and average level

have a larger effect for occupational segregation, but the average level was more significant

in sectoral segregation and in particular for urban and age 30-54 cohorts. In particular, it was

the commerce and service sector where most of the change was observed. This highlights the

importance of structural change that economies undergo during the development process as

important, and demands further analysis to further understand gendered segregation

outcomes. (Borrowman & Klasen, 2015)

Overall, it is important to note that while there is high correlation between

occupational and sectoral segregation over time, there are different driving forces of each, so

they can change and behave differently over time, and affect specific sectors, occupations,

environments, and age groups differently. We can only underscore that regional differences in

both structural and social norms can have large impacts on the effects of these drivers on

gender segregation.

VI. Closing Remarks

Empirical evidence has highlighted the complexities underlying occupational and

sectoral gendered segregation in the market place. While we find mixed or no correlation

between development and segregation, this does not mean that there is no interaction, but

rather that other drivers have a larger, more influential role. Evidence is partially in line with

neoclassical theory in that we see an increase in segregation as industrialization begins, but it

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decreases at a much slower rate than neoclassical theory suggests and in some cases

increases, implying that increasing competition and development alone, will not decrease

gender segregation in the labor market. Instead, our conclusions suggest we should consider

institutional and feminist theory when looking for mechanisms in which to break down and

reduce gender segregation. These theories emphasize the complexities in which existing

regional specific factors create a self-reinforcing gender bias that discriminates against

women. However, policies that seek to overcome these barriers can also have mixed results

with variation across occupational and sectoral sectors, which must be carefully considered

on a case-by-case basis. Furthermore, all policies pursued must be implemented carefully to

understand and avoid any negative impacts on gendered segregation that may result based on

regional preferences, history and level of development.

Finally, more research should be conducting making use of the newest data. Given

how complex these drivers interact with each other, it is essential to use the most up-to-date

and complete data available. Furthermore, while we can conclude that regional factors are a

large factor in the observed gendered segregation outcomes, these regional specific factors

are themselves made up of many complex factors. The World Bank (2012) cites market

failures as a result of low access to credit and land rights as being a major driver of

occupational segregation in the developing world; yet given the current data, we cannot

differentiate these factors from other regional factors. More complete and detailed data would

give a better understanding of how these variables within regional factors interact. Moreover,

we should place greater emphasis on differentiating these impacts between both sectors and

occupations, given that an overall impact may differ from an impact on specific sectors or

occupations. Overall, we need more detailed and complete data to better understand these

complex interactions and avoid arriving at broad conclusions.

Gender segregation across occupations and sectors remains an issue for all countries

with policies having different outcomes based on regional specific factors. Though the

interactions are complex and the evidence mixed, there remains strong evidence that pursuing

development alone is not enough and we must pursue policies that carefully seek to break

down gender barriers specific to the targeted region.

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Appendix

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TableA1. Trends in Occupational Segregation (Jacobs & Lim 1992)


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TableA2. Occupational Segregation controlling for Regional Factors (Ball 2008)


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TableA3. Occupational Segregation and State Policies (Chang 2004)


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TableA4. Occupational and Sectoral Segregation ID & IP (Borrowman & Klasen 2015)

drivers of occupational and sectoral gendered segregation, is development enough?

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