The same effects may arise from ALMP-driven improvements in skills and job matching - to the extent that they benefit disproportionately marginal labour market groups. Ideally, the higher labour supply elasticity of women should be dealt with by taxing them at a lower rate than men. Since this is not feasible in practice, policies to improve the availability of formal care for children and the elderly can serve as a second best solution. Such policies should help to reduce gender differences in working hours and pay, and at the same time improve long-run living standards through higher participation rates. This should reduce inequality between men and women with a positive effect on GDP per capita through better allocation of resources.