Gender choice at work

This paper analyzes the demand based causes of gender discrimination in the labor market and it aims at explaining the currently existing gender gaps in terms of labor market participation and labor income. I propose a formal model to analyze the gender discrimination that individuals face at work due to taste-based discrimination. I study the effects of discrimination on the labor market participation, income, and utility distributions and compare these effects between the female and male sectors of the society. I show that the conditions that dissipate the gender gaps improve efficiency as well. However, in order to reach a first best it is necessary to eliminate all kinds of gender related idiosyncratic preferences that are based on stereotypes and conscious and unconscious biases.