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Gender Gaps in the Labor Market and Economic Growth

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  • Agenor,Pierre-Richard
  • Karakurum-Ozdemir,Kamer
  • Pinto Moreira,Emmanuel

Abstract

This paper studies the effects of policies aimed at mitigating discrimination against women in the marketplace on the gender wage gap, decisions to invest in skills, the composition of employment and unemployment, and long-run growth. The analysis uses a gender-based overlapping generations model with labor market rigidities. Gender bias in the workplace varies inversely with the presence of skilled women (as agents of change) in the labor market and has a direct impact on their bargaining power in the family. The model is calibrated for Morocco. Experiments show that although the benefits of policies aimed at mitigating gender bias in the workplace can promote growth and be significantly magnified through a stronger presence of skilled women in the labor market, a trade-off may emerge with respect to female unemployment when anti-discrimination policies are combined with policies aimed at subsidizing women's training. To internalize this trade-off, anti-discrimination policies in the marketplace may need to be complemented by measures aimed at reducing labor costs and raising productivity.

Suggested Citation

  • Agenor,Pierre-Richard & Karakurum-Ozdemir,Kamer & Pinto Moreira,Emmanuel, 2018. "Gender Gaps in the Labor Market and Economic Growth," Policy Research Working Paper Series 8661, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8661
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    Cited by:

    1. Banerjee, Utsa & Peñarrieta, Luis Castro & Chakraborty, Pavel, 2025. "Can trade policy change gender equality? Evidence from Chile," Journal of International Economics, Elsevier, vol. 157(C).
    2. Gomes Orlando, 2024. "Economic Growth in the Age of Ubiquitous Threats: How Global Risks are Reshaping Growth Theory," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-15, January.
    3. Abdulla, Eman & Lim, King Yoong & Morris, Diego & Saliba, Faten, 2022. "Climate Change, Gender Equality, and Firm-Level Innovation : Cross-Country Evidence," The Warwick Economics Research Paper Series (TWERPS) 1429, University of Warwick, Department of Economics.
    4. Deza, María Cecilia & Dondo, Mariana & Jara, H. Xavier & Rodríguez, David & Torres, Javier, 2025. "The role of tax-benefit systems in reducing the gender income gap in Latin America," LSE Research Online Documents on Economics 129049, London School of Economics and Political Science, LSE Library.
    5. Malah-Kuete, Yselle Flora & Avom, Désiré & Omgba, Luc Désiré, 2025. "Women in Sciences and Engineering : Why Leveling Employment in Industrial Sectors Matters for Economic Diversification in Developing Countries," Policy Research Working Paper Series 11211, The World Bank.
    6. Hosseini Shoabjareh, Azamsadat & Ghasri, Milad, 2025. "The potential impact of childbirth on women's commute time and labour market participation: a cohort analysis," Research in Transportation Economics, Elsevier, vol. 111(C).
    7. Abdulla, Eman & Lim, King Yoong & Morris, Diego & Saliba, Faten, 2025. "Climate change and innovation: Exploring the mediating role of gender equality at the firm level," Energy Economics, Elsevier, vol. 148(C).
    8. Yeshwas Admasu & Gina Crivello & Catherine Porter, 2021. "Young women's transitions from education to the labour market in Ethiopia: A gendered life-course perspective," WIDER Working Paper Series wp-2021-96, World Institute for Development Economic Research (UNU-WIDER).

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