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Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?

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  • Schober, Thomas

    ()
    (University of Linz)

  • Winter-Ebmer, Rudolf

    ()
    (University of Linz)

Abstract

Seguino (2000) shows that gender wage discrimination in export-oriented semi-industrialized countries might be fostering investment and growth in general. While the original analysis does not have internationally comparable wage discrimination data, we replicate the analysis using data from a meta-study on gender wage discrimination and do not find any evidence that more discrimination might further economic growth – on the contrary: if anything the impact of gender inequality is negative for growth. Standing up for more gender equality – also in terms of wages – is good for equity considerations and at least not negative for growth.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4323.

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Length: 19 pages
Date of creation: Jul 2009
Date of revision:
Publication status: published in: World Development, 2011, 39 (8), 1476-1484
Handle: RePEc:iza:izadps:dp4323

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Keywords: gender wage gap; growth;

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References

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  1. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  2. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 374-87, June.
  3. Busse, Matthias & Spielmann, Christian, 2004. "Gender Inequality and Trade," HWWA Discussion Papers 308, Hamburg Institute of International Economics (HWWA).
  4. Stephan Klasen & Francesca Lamanna, 2008. "The Impact of Gender Inequality in Education and Employment on Economic Growth in Developing Countries: Updates and Extensions," Ibero America Institute for Econ. Research (IAI) Discussion Papers, Ibero-America Institute for Economic Research 175, Ibero-America Institute for Economic Research.
  5. Berta Esteve-Volart, 2004. "Gender Discrimination and Growth: Theory and Evidence from India," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers, Suntory and Toyota International Centres for Economics 42, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  6. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2005. "A Meta-Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 19(3), pages 479-511, 07.
  7. Barro, Robert J. & Lee, Jong-Wha, 1994. "Sources of economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 40(1), pages 1-46, June.
  8. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential," IZA Discussion Papers 822, Institute for the Study of Labor (IZA).
  9. Baldwin, Marjorie & Johnson, William G, 1992. "Estimating the Employment Effects of Wage Discrimination," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 446-55, August.
  10. Blecker, Robert A & Seguino, Stephanie, 2002. "Macroeconomic Effects of Reducing Gender Wage Inequality in an Export-Oriented, Semi-industrialized Economy," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 6(1), pages 103-19, February.
  11. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  12. Haddad, Lawrence & Hoddinott, John & Alderman, Harold & DEC, 1994. "Intrahousehold resource allocation : an overview," Policy Research Working Paper Series 1255, The World Bank.
  13. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, Elsevier, vol. 28(7), pages 1211-1230, July.
  14. Schultz, T. Paul, 1993. "Demand for children in low income countries," Handbook of Population and Family Economics, Elsevier, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 8, pages 349-430 Elsevier.
  15. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 15(3), pages 131-150, Summer.
  16. Lagerlof, Nils-Petter, 2003. " Gender Equality and Long-Run Growth," Journal of Economic Growth, Springer, Springer, vol. 8(4), pages 403-26, December.
  17. 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, World Bank Group, vol. 16(3), pages 345-373, December.
  18. Standing, Guy, 1999. "Global Feminization Through Flexible Labor: A Theme Revisited," World Development, Elsevier, Elsevier, vol. 27(3), pages 583-602, March.
  19. Stephanie Seguino & Maria Sagrario Floro, 2003. "Does Gender have any Effect on Aggregate Saving? An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 17(2), pages 147-166.
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Cited by:
  1. Corbella i Domenech, Teresa & Domingo Vernis, Misericòrdia, 2010. "Gender gap index in Spain by regions," Working Papers 2072/148478, Universitat Rovira i Virgili, Department of Economics.

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