We propose a theory where capital market imperfections are at the origin of cross-country TFP differences. In our theory entrepreneurs have private information about the multifactor productivity of their technology. We study how the contracting environment, as described by the ability to enforce...

We develop a quantitative theory of gender differences in labor market participation, hours worked, labor turnover, and human capital accumulation. In our theory, young females expect to face higher labor turnover and to work less hours than males because they allocate time to child rearing. As...