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A Growth Model with Gender Inequality in Employment, Human Capital, and Socio-Political Participation

  • Thomas Bassetti

    ()

  • Donata Favaro

    ()

This paper proposes an endogenous growth model in which gender inequality in employment has an important role in explaining different development dimensions such as socio-political participation, educational attainments, and working hours, in developed countries. Starting from a theoretical framework à la Lucas, we model the decision to participate in determining a society’s values as a game in which the existence of gender inequalities in the labor market may affect the time spent by men and women in social activities. Although we assume gender inequality and population growth to be exogenous factors, relationships among our main variables become extremely complex. Our model’s predictions are in line with some stylized facts observed in developed economies, in particular across the European regions: more equal societies have higher socio-political participation, devote less time to work, and present higher educational attainments and rates of economic growth than less equal ones. Our model’s main policy implications are immediate: political interventions designed to promote female employment must be accompanied by pro-family policies in order to sustain economic growth and improve quality of life, by reducing time for work and increasing time for other activities.

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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp14_11.

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Length: 35 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:wpc:wplist:wp14_11
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  1. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  2. Antonio Ladron de Guevara & Salvador Ortigueira & Manuel S. Santos, 1994. "Equilibrium Dynamics in Two-Sector Models of Endogenous Growth," Working Papers 9403, Centro de Investigacion Economica, ITAM.
  3. Brad Sturgill, 2010. "Cross-country Variation in Factor Shares and its Implications for Development Accounting," DEGIT Conference Papers c015_014, DEGIT, Dynamics, Economic Growth, and International Trade.
  4. Cavalcanti, Tiago & Tavares, José, 2007. "The Output Cost of Gender Discrimination: A Model-Based Macroeconomic Estimate," CEPR Discussion Papers 6477, C.E.P.R. Discussion Papers.
  5. M. Anne Hill & Elizabeth King, 1995. "Women's education and economic well-being," Feminist Economics, Taylor & Francis Journals, vol. 1(2), pages 21-46.
  6. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-87, June.
  7. Stephanie Seguino & Maria Sagrario Floro, 2003. "Does Gender have any Effect on Aggregate Saving? An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(2), pages 147-166.
  8. Erich Gundlach, 1997. "Openness and economic growth in developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(3), pages 479-496, September.
  9. 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.
  10. Stephen Knowles & Paula K. Lorgelly, 2002. "Are educational gender gaps a brake on economic development? Some cross-country empirical evidence," Oxford Economic Papers, Oxford University Press, vol. 54(1), pages 118-149, January.
  11. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  12. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
  13. Paula K. Lorgelly & P. Dorian Owen, 1999. "The effect of female and male schooling on economic growth in the Barro-Lee model," Empirical Economics, Springer, vol. 24(3), pages 537-557.
  14. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
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