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The impact of gender equality policies on economic growth

Author

Listed:
  • Jinyoung Kim
  • Jong-Wha Lee
  • Kwanho Shin

Abstract

This paper introduces a model of gender inequality and economic growth that focuses on the determination of women's time allocation among market production, home production, child rearing, and child education. The theoretical model is based on Agenor (2016), but differs in several important dimensions. The model is calibrated using microlevel data of Asian economies, and numerous policy experiments are conducted to investigate how various aspects of gender inequality are related to the growth performance of the economy. The analysis shows that improving gender equality can contribute significantly to economic growth by changing females' time allocation and promoting accumulation of human capital. We find that if gender inequality is completely removed, aggregate income will be about 6.6% and 14.5% higher than the benchmark economy after one and two generations respectively, while corresponding per capita income will be higher by 30.6% and 71.1% in the hypothetical gender-equality economy. This is because fertility and population decrease as women participate more in the labor market.

Suggested Citation

  • Jinyoung Kim & Jong-Wha Lee & Kwanho Shin, 2016. "The impact of gender equality policies on economic growth," CAMA Working Papers 2016-29, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2016-29
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2016-05/29_2016_kim_lee_shin_0.pdf
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    References listed on IDEAS

    as
    1. Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, December.
    2. Matthias Busse & Christian Spielmann, 2006. "Gender Inequality and Trade," Review of International Economics, Wiley Blackwell, vol. 14(3), pages 362-379, August.
    3. 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.
    4. Tiago Cavalcanti & José Tavares, 2016. "The Output Cost of Gender Discrimination: A Model‐based Macroeconomics Estimate," Economic Journal, Royal Economic Society, vol. 126(590), pages 109-134, February.
    5. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, July.
    6. Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, 2004. "International Trade and Gender Wage Discrimination: Evidence from East Asia," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 237-254, May.
    7. David Cuberes & Marc Teignier, 2014. "Gender Inequality And Economic Growth: A Critical Review," Journal of International Development, John Wiley & Sons, Ltd., vol. 26(2), pages 260-276, March.
    8. David Cuberes & Marc Teignier, 2012. "Gender Gaps in the Labor Market and Aggregate Productivity," Working Papers 2012017, The University of Sheffield, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Gender equality and economic growth!
      by paragwaknis in Musings of the Sorts on 2016-06-16 21:31:51

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    Cited by:

    1. Bobek Vito & Schachl Andrea & Horvat Tatjana, 2022. "The Impact of Women’s Economic Empowerment on the Rise of Female Entrepreneurship in Namibia," Naše gospodarstvo/Our economy, Sciendo, vol. 68(4), pages 53-65, December.

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    More about this item

    Keywords

    gender inequality; economic growth; overlapping generations model; labor market; human capital accumulation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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