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How Important Are Labor-Market Gender Gaps in the South Caucasus?

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  • Marc Teignier

    (Department of Economics, University of Barcelona, 08034 Barcelona, Spain
    These authors contributed equally to this work.)

  • David Cuberes

    (Department of Economics, Clark University, Worcester, MA 01610, USA
    These authors contributed equally to this work.)

Abstract

In this paper, we use survey data from the South Caucasus countries (Armenia, Azerbaijan, and Georgia) to document the presence of gender gaps in the labor market and examine its consequences. To do the analysis, we use a numerical general-equilibrium occupational choice model with heterogeneous agents in entrepreneurial ability. We then introduce the observed gender gaps in labor-force participants, employers, and self-employed. We find that entrepreneurship gender gaps cause an average GDP loss of 6.2%, while gender gaps in labor-force participation cause an average GDP loss of 9%. Armenia (2007) displays the largest total loss and Georgia (2007, 2014) the smallest ones. We also decompose the gender gaps and their associated costs by households with different education levels and with and without dependents at home. Our results indicate that most of the income losses are driven by households with high education and those with dependents, especially those with both children and elderly at home.

Suggested Citation

  • Marc Teignier & David Cuberes, 2024. "How Important Are Labor-Market Gender Gaps in the South Caucasus?," Economies, MDPI, vol. 12(12), pages 1-18, December.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:12:p:332-:d:1536721
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    References listed on IDEAS

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    2. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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