Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance

Facing scarcity of a production factor, a firm can develop technologies to either substitute the scarce factor (price effect) or complement the more abundant factors (market size effect). Whether the market size effect or the price effect dominates largely depends on the elasticity of substitution a...

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Main Authors: Tan, Zhibo, Zhang, Xiaobo
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2016
Subjects:
Online Access:https://hdl.handle.net/10568/147474
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author Tan, Zhibo
Zhang, Xiaobo
author_browse Tan, Zhibo
Zhang, Xiaobo
author_facet Tan, Zhibo
Zhang, Xiaobo
author_sort Tan, Zhibo
collection Repository of Agricultural Research Outputs (CGSpace)
description Facing scarcity of a production factor, a firm can develop technologies to either substitute the scarce factor (price effect) or complement the more abundant factors (market size effect). Whether the market size effect or the price effect dominates largely depends on the elasticity of substitution among factors according to the theory of directed technical change. However, it is a great challenge to empirically test the theory because factor prices are often endogenously determined. In this paper, we use imbalanced sex ratios across Chinese provinces as a source of identification strategy to test how female labor scarcity affects corporate innovation based on the matched dataset of annual surveys of industrial firms in China and the national patent database. In regions with a large male population, female-intensive industries face more serious problems finding female workers than their male-intensive counterparts. We find that such female shortages have spurred firms in female-intensive industries to innovate more. The pattern is much more evident in industries with low substitution between female and male workers than in those with high substitution, consistent with the predictions of directed technical change theory.
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spelling CGSpace1474742025-11-06T05:19:02Z Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance Tan, Zhibo Zhang, Xiaobo innovation gender technological changes market structure technology labour elasticities factor analysis markets price volatility prices Facing scarcity of a production factor, a firm can develop technologies to either substitute the scarce factor (price effect) or complement the more abundant factors (market size effect). Whether the market size effect or the price effect dominates largely depends on the elasticity of substitution among factors according to the theory of directed technical change. However, it is a great challenge to empirically test the theory because factor prices are often endogenously determined. In this paper, we use imbalanced sex ratios across Chinese provinces as a source of identification strategy to test how female labor scarcity affects corporate innovation based on the matched dataset of annual surveys of industrial firms in China and the national patent database. In regions with a large male population, female-intensive industries face more serious problems finding female workers than their male-intensive counterparts. We find that such female shortages have spurred firms in female-intensive industries to innovate more. The pattern is much more evident in industries with low substitution between female and male workers than in those with high substitution, consistent with the predictions of directed technical change theory. 2016-07-01 2024-06-21T09:22:55Z 2024-06-21T09:22:55Z Working Paper https://hdl.handle.net/10568/147474 en https://hdl.handle.net/10568/151356 https://hdl.handle.net/10568/153558 https://hdl.handle.net/10568/150410 https://cn.ifpri.org/archives/4607 Open Access application/pdf International Food Policy Research Institute Tan, Zhibo and Zhang, Xiaobo. 2016. Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance. IFPRI Discussion Paper 1540. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147474
spellingShingle innovation
gender
technological changes
market structure
technology
labour
elasticities
factor analysis
markets
price volatility
prices
Tan, Zhibo
Zhang, Xiaobo
Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title_full Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title_fullStr Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title_full_unstemmed Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title_short Does female labor scarcity encourage innovation? Evidence from China’s gender imbalance
title_sort does female labor scarcity encourage innovation evidence from china s gender imbalance
topic innovation
gender
technological changes
market structure
technology
labour
elasticities
factor analysis
markets
price volatility
prices
url https://hdl.handle.net/10568/147474
work_keys_str_mv AT tanzhibo doesfemalelaborscarcityencourageinnovationevidencefromchinasgenderimbalance
AT zhangxiaobo doesfemalelaborscarcityencourageinnovationevidencefromchinasgenderimbalance