A Model of Gender Inequality and Economic Growth

35 Pages Posted: 25 Feb 2016

See all articles by Jinyoung Kim

Jinyoung Kim

Korea University - Department of Economics

Jong-Wha Lee

Korea University

Kwanho Shin

Korea University

Date Written: February 19, 2016

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.

Keywords: economic growth, gender inequality, human capital accumulation, labor market, overlapping generations model

JEL Classification: E24, E60, J13, J71

Suggested Citation

Kim, Jinyoung and Lee, Jong-Wha and Shin, Kwanho, A Model of Gender Inequality and Economic Growth (February 19, 2016). Asian Development Bank Economics Working Paper Series No. 475. Available at SSRN: https://ssrn.com/abstract=2737844 or http://dx.doi.org/10.2139/ssrn.2737844

Jinyoung Kim (Contact Author)

Korea University - Department of Economics ( email )

1 Anam-dong 5 ka
Seoul, 136-701
Korea

Jong-Wha Lee

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

Kwanho Shin

Korea University ( email )

1 Anam-dong 5 ka
Sunbuk-Ku, Department of Economics
Seoul 136-701
Korea
82-2-3290-2220 (Phone)
82-2-3290-2719 (Fax)

HOME PAGE: econ.korea.ac.kr/~khshin

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