Impact of Gender Inequality on the Republic of Korea's Long-Term Economic Growth: An Application of the Theoretical Model of Gender Inequality and Economic Growth

Abstract

This paper presents a theoretical model that can analyze the impact of gender inequality on long-term economic growth. The model is calibrated to fit to Korean data. We find that gender equality policies that lower discrimination in the labor market or that increase the time spent by a father on child-rearing can contribute positively to female labor market participation and per capita income growth. The simulation results show that when the disparities between men and women at home and in the labor market are completely removed, the female labor force participation rate increases from 54.4% to 67.5%, and the growth rate in per capita income rises from 3.6% to 4.1% on average over a generation.

Keywords: economic growth, female labor market participation, gender inequality, human capital accumulation, Republic of Korea

JEL Classification: E24, J13, J71, O53