Gender Differences in Agricultural Productivity: The Role of Market Imperfections

Abstract

This paper shows the implications of credit and labor market imperfections on gender differences in agricultural labor productivity, especially highlighting how both imperfections negatively affect female productivity by discouraging off-farm income generating activities and restricting access to inputs. The paper theoretically models the relationship between gender differences in agricultural labor productivity and market imperfections and it provides empirical evidence consistent with our theoretical model by decomposing the contribution of different factors to such gender differences. We find that agricultural labor productivity is on average 44 percent lower on plots belonging to female-headed households than on those belonging to male-headed households.

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