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Talent allocation, gender disparities and post‐reform economic growth in Central America

Bibliographic Data

ID9723461
AuthorsRishabh Sinha (0000-0001-9964-4751, Independent researcher, corresponding author)
Year2025
Volume92
Issue367
Pages848-882
Publication date2025-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12575
OpenAlexW4408487773
LanguageEN
References cited45

From 1995 to 2015, Costa Rica, El Salvador and Panama underwent significant labour market transformations, particularly in the occupational distribution and participation of women. This paper examines these shifts through an occupational choice model, focusing on three key frictions affecting efficient talent allocation: labour market discrimination, barriers to human capital accumulation, and restrictive social norms. The findings reveal that improved talent allocation drove economic growth in Costa Rica and Panama, primarily due to reductions in barriers to human capital accumulation. In contrast, labour market discrimination intensified, supporting the retaliatory hypothesis and creating headwinds for growth. The aggregate effects in El Salvador are relatively mild and noisy, making it difficult to pin down the impact qualitatively. Nonetheless, prevailing social norms around market work have precipitated sharply in El Salvador for both genders, creating a significant impediment to growth

Development economics · Economics · Economic Growth and Productivity · Labor market dynamics and wage inequality · Poverty, Education, and Child Welfare

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