Women have always earned less than men, with men's greater physical strength explaining a large portion of the difference. This raises the question of why the gender gap did not disappear when the importance of physical strength waned with the emergence of the modern labor market. This paper...

Recent empirical studies document that the level of resource misallocation in the service sector is significantly higher than in the manufacturing sector. We quantify the importance of this difference and study its sources. Conservative estimates for Portugal (2008) show that closing this gap,...