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The impact of gender wage gap on sectoral economic growth – cross-country approach

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  • Joanna Wolszczak-Derlacz

    ()
    (Gdansk University of Technology, Gdansk, Poland)

Abstract

We propose an empirical analysis of testing the relationship between gender wage gap and economic growth. The study takes into account 12 manufacturing sectors in 18 OECD countries for the period between 1970 and 2005.We use industrial statistics (EU KLEMS, 2008) on female and male wages that distinguish between wages paid to different groups of workers classified according to skill level: high, medium and low. We estimate augmented production function where the male-female wage differentials constitute a potential channel influencing growth (positively or negatively). Our research is motivated by the ambiguous results of previous empirical studies (e.g.: Seguiono, 2000; Busse and Spielmann, 2006; Seguino, 2011; Schober and Winter-Ebmer, 2011). Our main findings indicate that gender wage gap for high, medium and low-skilled workers is negatively correlated with sectoral growth. At the same time we confirmed the positive role of trade and human capital. The results are confirmed in number of robustness checks.

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File URL: ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME_A_6_WolszczakDerlacz.pdf
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Bibliographic Info

Paper provided by Faculty of Management and Economics, Gdansk University of Technology in its series GUT FME Working Paper Series A with number 6.

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Date of creation: Apr 2013
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Handle: RePEc:gdk:wpaper:6

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Keywords: gender wage gap; economic growth; manufacturing sectors;

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  1. Seguino, Stephanie, 2011. "Gender Inequality and Economic Growth: A Reply to Schober and Winter-Ebmer," World Development, Elsevier, vol. 39(8), pages 1485-1487, August.
  2. Schober, Thomas & Winter-Ebmer, Rudolf, 2011. "Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?--A Comment," World Development, Elsevier, vol. 39(8), pages 1476-1484, August.
  3. Oostendorp, Remco, 2004. "Globalization and the gender wage gap," Policy Research Working Paper Series 3256, The World Bank.
  4. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
  5. Matthias Busse & Christian Spielmann, 2006. "Gender Inequality and Trade," Review of International Economics, Wiley Blackwell, vol. 14(3), pages 362-379, 08.
  6. Gunseli Berik & Yana van der Meulen Rodgers & Stephanie Seguino, 2009. "Feminist Economics of Inequality, Development, and Growth," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 1-33.
  7. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
  8. Francesco Caselli, 2004. "Accounting for Cross-Country Income Differences," NBER Working Papers 10828, National Bureau of Economic Research, Inc.
  9. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
  10. Daron Acemoglu & David H. Autor & David Lyle, 2004. "Women, War, and Wages: The Effect of Female Labor Supply on the Wage Structure at Midcentury," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 497-551, June.
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  12. Stephan Klasen, 2002. "Low Schooling for Girls, Slower Growth for All? Cross-Country Evidence on the Effect of Gender Inequality in Education on Economic Development," World Bank Economic Review, World Bank Group, vol. 16(3), pages 345-373, December.
  13. Stephan Klasen & Francesca Lamanna, 2009. "The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 91-132.
  14. Lilia Dominguez-Villalobos & Flor Brown-Grossman, 2010. "Trade Liberalization and Gender Wage Inequality in Mexico," Feminist Economics, Taylor & Francis Journals, vol. 16(4), pages 53-79.
  15. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
  16. Pervaiz, Zahid & Chani, Muhammad Irfan & Jan, Sajjad Ahmad & Chaudhary, Amatul R., 2011. "Gender inequality and economic growth: a time series analysis for Pakistan," MPRA Paper 37176, University Library of Munich, Germany, revised 2011.
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