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The contribution of Women's Employment and Earnings to Household Income Inequality: A Cross-Country Analysis

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  • Susan Harkness

Abstract

Aggregate data shows an inverse relationship between female employment and income inequality. This paper investigates this relationship using micro-data for seventeen OECD countries. In all countries, female earnings exert an equalising force on the distribution of income in spite of large employment gaps between high and low educated women. There are marked similarities across countries; even in Nordic countries where employment rates are high female earnings comprise a small proportion of the family budget and single women, employed or not, are overrepresented in the bottom of the income distribution. The US is the one country that stands out, with greater earnings equality among couples and more single women households making it into the top quintile. For all countries, raising female employment and reducing employment inequality between women would have a substantial impact on reducing household income inequality, and a far larger impact than reducing the gender pay gap.

Suggested Citation

  • Susan Harkness, 2010. "The contribution of Women's Employment and Earnings to Household Income Inequality: A Cross-Country Analysis," LIS Working papers 531, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:531
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    Cited by:

    1. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers of the African Governance and Development Institute. 20/076, African Governance and Development Institute..
    2. Federica Alfani & Fabio Clementi & Michele Fabiani & Vasco Molini & Enzo Valentini, 2024. "Does gender equality in labor participation bring equality? Evidence from developing and developed countries," Empirical Economics, Springer, vol. 67(1), pages 289-311, July.
    3. Stefan Kranzinger, 2020. "The decomposition of income inequality in the EU-28," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 643-668, August.
    4. Tendai Zawaira & Matthew Clance & Carolyn Chisadza, 2023. "Social institutions, gender attitudes and female labour force participation in sub‐Saharan Africa," South African Journal of Economics, Economic Society of South Africa, vol. 91(2), pages 186-213, June.
    5. Raymundo M. Campos Vázquez & Andrés Hincapie & Rubén I. Rojas Valdés, 2011. "Family Income Inequality and the Role of Wives Earnings in Mexico: 1988-2010," Serie documentos de trabajo del Centro de Estudios Económicos 2011-07, El Colegio de México, Centro de Estudios Económicos.
    6. Nolan, Brian & Azzollini, Leo & Breen, Richard, 2022. "From Gender Equality to Household Earnings Equality: the role of Women's Labour Market Outcomes across OECD Countries," INET Oxford Working Papers 2022-13, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    7. Matthijs Kalmijn, 2013. "The Educational Gradient in Marriage: A Comparison of 25 European Countries," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1499-1520, August.
    8. Inhoe Ku & Wonjin Lee & Seoyun Lee & Kyounghoon Han, 2018. "The Role of Family Behaviors in Determining Income Distribution: The Case of South Korea," Demography, Springer;Population Association of America (PAA), vol. 55(3), pages 877-899, June.
    9. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers 20/076, European Xtramile Centre of African Studies (EXCAS).
    10. Raymundo M. Campos-Vázquez & Andrés Hincapié & Ruben Irvin Rojas-Valdés, 2012. "Family Income Inequality and the Role of Married Females' Earnings in Mexico: 1988-2010," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 49(1), pages 67-98, May.
    11. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 20/008, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    12. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Research Africa Network Working Papers 20/076, Research Africa Network (RAN).
    13. Sophie Ponthieux, 2014. "L’inégalité des revenus d’activité et les niveaux de vie des femmes et des hommes - Une comparaison entre cinq pays de l’Union européenne," Économie et Statistique, Programme National Persée, vol. 469(1), pages 85-119.
    14. Boschini, Anne & Håkanson, Christina & Rosén, Åsa & Sjögren, Anna, 2011. "Trading off or having it all? Completed fertility and mid-career earnings of Swedish men and women," Working Paper Series 2011:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    Income inequality; female employment; gender pay gap;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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