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A Model of Gender Inequality and Economic Growth

Author

Listed:
  • Jinyoung Kim

    (Korea University)

  • Jong-Wha Lee

    (Asiatic Research Institute, Korea University)

  • Kwanho Shin

    (Department of Economics, Korea University)

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 Agénor (2012), 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. "A Model of Gender Inequality and Economic Growth," ADB Economics Working Paper Series 475, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0475
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ahmed Lahsen, Amina & Piper, Alan T. & Thiele, Ida-Anna, 2020. "Kim Jiyoung, Born 1982, and the Labour Market: Overeducation, Gender, Income and Life Satisfaction. Panel evidence from Korea," MPRA Paper 100616, University Library of Munich, Germany.
    2. Farhad Taghizadeh-Hesary & Naoyuki Yoshino & Lisa Fukuda, 2019. "Gender and Corporate Success: An Empirical Analysis of Gender-Based Corporate Performance on a Sample of Asian Small and Medium-Sized Enterprises," ADBI Working Papers 937, Asian Development Bank Institute.
    3. Verma, Anjali P. & Imelda, Imelda, 2019. "Clean Energy Access : Gender Disparity, Health, and Labor Supply," UC3M Working papers. Economics 29397, Universidad Carlos III de Madrid. Departamento de Economía.
    4. Choi, Eleanor J. & Hwang, Jisoo & Son, Hyelim, 2025. "The Effects of Exposure to a Large-Scale Recession on Higher Education and Early Labor Market Outcomes," IZA Discussion Papers 17938, IZA Network @ LISER.
    5. Haroon Ur Rashid Khan & Anwar Khan & Khalid Zaman & Agha Amad Nabi & Sanil S. Hishan & Talat Islam, 2017. "Gender discrimination in education, health, and labour market: a voice for equality," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2245-2266, September.
    6. Laura Cabeza-García & Esther B. Del Brio & Mery Luz Oscanoa-Victorio, 2018. "Gender Factors and Inclusive Economic Growth: The Silent Revolution," Sustainability, MDPI, vol. 10(1), pages 1-14, January.
    7. Seungwoo Han, 2022. "Identifying the roots of inequality of opportunity in South Korea by application of algorithmic approaches," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 9(1), pages 1-10, December.
    8. Nunes, Débora & Arora, Diksha & Braunstein, Elissa, 2025. "Real effective exchange rate shocks and job quality by gender in Latin America," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 262-273.
    9. Yhesaem Park & Almas Heshmati, 2019. "The Effects of Labor Market Characteristics on Women’s Poverty in Korea," Economies, MDPI, vol. 7(4), pages 1-16, November.
    10. Jong-Wha Lee & Eunbi Song, 2025. "Women's Education, Employment, and Cost of Family Formation: A Structural Analysis of Fertility Decline in Korea," CAMA Working Papers 2025-51, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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    More about this item

    Keywords

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    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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