We find evidence that women are underrepresented both among Science, Technology, Engineering and Mathematics (STEM) graduates and entrepreneurs. If STEM graduates are more likely to be successful entrepreneurs (Queiró, 2022), gender distortions in access to STEM majors could cause talent misallocation in entrepreneurship. The purpose of the paper is to measure the macroeconomic cost of gender distortions in STEM disciplines through entrepreneurship. To this end, we formulate a general equilibrium model of occupational and educational choices, with gender and heterogeneous ability. The model replicates key facts of the Portuguese economy and we use it to construct a counterfactual economy without gender distortions. In this hypothetical economy, the productivity of firms is higher due to two mechanisms. First, women are better entrepreneurs. Second, in general equilibrium, the arrival of talented female entrepreneurs increases labor demand, raising wages and drawing less talented male entrepreneurs away from the entrepreneurial pool.
"Skilled labor and the trade-off between tangible and intangible capital"
Abstract and details coming soon.
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