Regional Industry Transformation, Labor Demand, and Local Gender Gaps

Using census microdata for Mexico during 1990-2010, this paper documents a disproportionate increase in female-to-male gaps in working hours in smaller compared to larger municipalities. This coincides with a more rapid increase in the share of services in smaller locations that initially specialized in primary activities and manufacturing. Motivated by these stylized facts, I quantify the impact of industry-specific labor demand shocks on local gender gaps in working hours across municipality sizes. I find that the interaction between industry specializations, industry differences in female labor intensities, and the rise of the service economy boosted female employment in smaller cities.