The Impact of Gender Equality Policies on Economic Growth

33 Pages Posted: 29 May 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: May 26, 2016


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 (2016), 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: gender inequality, economic growth, overlapping generations model, labor market, human capital accumulation

JEL Classification: E24, E60, J13, J71

Suggested Citation

Kim, Jinyoung and Lee, Jong-Wha and Shin, Kwanho, The Impact of Gender Equality Policies on Economic Growth (May 26, 2016). CAMA Working Paper No. 29/2016 . Available at SSRN: or

Jinyoung Kim

Korea University - Department of Economics ( email )

1 Anam-dong 5 ka
Seoul, 136-701

Jong-Wha Lee (Contact Author)

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
82-2-3290-2220 (Phone)
82-2-3290-2719 (Fax)


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