Gender gaps in skills and labor market outcomes: evidence from the PIAAC

Abstract

Our paper makes the first attempt to address the empirical relationRicship between cognitive skills and gender gaps in labor market performance. We do so in a cross-country setting. To that end we use the PIAAC dataset, which contains information on OECD and non-OECD economies. Firstly, we document the existence of gender gaps in cognitive skills for numeracy, which are found to be around 2.5–4.6% and increase with age. These gaps remain even when comparing men and women within the same level and field of study. Next, we document sizable gender gaps in labor market outcomes, such as Labor Force Participation and hourly wages—around 18%, increase with age and rise remarkably for parents. Math skills are positively and strongly associated with these two labor market outcomes and its contribution to explain gender gaps, although significant, is limited—between 10 15% at most—in particular for parents.