You're the One That I Want! Understanding the Overrepresentation of Women in the Public Sector

The public sector hires disproportionally more women than men. Using microdata, we document gender differences in employment, transition probabilities, hours, and wages in the public and private sector. We calibrate a search and matching model where men and women decide whether to participate and whether to enter public or private sector labor markets. We quantify how much of the selection of women into the public sector is driven by (i) lower gender wage gaps, (ii) fewer hours, (iii) greater job security, or (iv) intrinsic preferences. Preferences and wages explain most of the overrepresentation, with significant variations across countries and educational groups. (JEL J16, J22, J23, J31, J41, J45)