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A Model of Gender Inequality and Economic Growth

Author

Listed:
  • Kim, Jinyoung

    (Korea University)

  • Lee, Jong-Wha

    (Asiatic Research Institute, Korea University)

  • Shin, Kwanho

    (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

  • Kim, Jinyoung & Lee, Jong-Wha & Shin, Kwanho, 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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    1. Raquel Fernández, 2009. "Women's Rights and Development," NBER Working Papers 15355, National Bureau of Economic Research, Inc.
    2. Jeremy Greenwood & Ananth Seshadri & Mehmet Yorukoglu, 2005. "Engines of Liberation," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 109-133.
    3. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    4. Stephan Klasen & Francesca Lamanna, 2009. "The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 91-132.
    5. Ehrlich, Isaac & Lui, Francis T, 1991. "Intergenerational Trade, Longevity, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1029-1059, October.
    6. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    7. Fernández, Raquel, 2009. "Women's Rights and Development," CEPR Discussion Papers 7464, C.E.P.R. Discussion Papers.
    8. Lagerlof, Nils-Petter, 2003. "Gender Equality and Long-Run Growth," Journal of Economic Growth, Springer, vol. 8(4), pages 403-426, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Fukuda, Lisa, 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.
    2. Laura Cabeza-García & Esther B. Del Brio & Mery Luz Oscanoa-Victorio, 2018. "Gender Factors and Inclusive Economic Growth: The Silent Revolution," Sustainability, MDPI, Open Access Journal, vol. 10(1), pages 1-14, January.
    3. Imelda, Imelda & Verma, Anjali P., 2019. "Clean Energy Access : Gender Disparity, Health, and Labor Supply," UC3M Working papers. Economics 29397, Universidad Carlos III de Madrid. Departamento de Economía.

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    More about this item

    Keywords

    economic growth; gender inequality; human capital accumulation; labor market; overlapping generations model;
    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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