Gender differences in labor market decisions in rural Guatemala

This study analyzes male-female differences in workforce participation and self-employment in rural Guatemala. Gender differences in rural labor market outcomes are examined using the 1997 Survey of Rural Entrepreneurs and Financial Services, conducted in the rural areas of the departments of San Marcos. Quezaltenango, Huehuetenango. Alta Verapaz, Petén, and Chimiquimula. There are substantial differences in the labor force participation rates of men and women (86.5 vs 24.0 percent) and in self-employment (49.8 vs 31.9 percent). The empirical results suggest that external constraints explain almost all of the observed gender gap in employment. Gender differences in individual endowments and human capital contribute to increase the male-female self-employment gap: however, structural factors help to reduce gender differences in rural entrepreneurship.