Female Education Externality and Inclusive Growth

13 Pages Posted: 26 Mar 2019 Last revised: 13 Jun 2019

See all articles by Gihoon Hong

Gihoon Hong

Pusan National University

Soyoung Kim

University of Tokyo

Geunhwan Park

Pusan National University

Seung-Gyu Sim

Aoyama Gakuin University

Date Written: June 12, 2019

Abstract

Education is generally believed to be beneficial in fostering, independent of gender, higher labor productivity. Female education may, however, cause other socio-economic gains which are not captured by higher wage or better compensation package for the educated female worker in the labor market (positive externality). This paper investigates the casual effect of enhancing female education and reducing gender education inequality on various measures of sustainable development. After addressing the endogeneity issue associated with gender education inequality employing a novel instrumental variable (IV), we find mitigating gender education inequality to be associated with lower infant mortality and poverty rates and improvements in health and environmental conditions. Our IV estimation result reports that a one standard deviation increase in the female-to-male ratio of average years of schooling is associated with a lower poverty rate by about 0.98 percentage points. The results indicate that expanding women's educational opportunities is an effective way to promote inclusive growth.

Keywords: female education externality, sustainable development, inclusive growth, returns to education

JEL Classification: I24, I25, I26

Suggested Citation

Hong, Gihoon and Kim, Soyoung and Park, Geunhwan and Sim, Seung-Gyu, Female Education Externality and Inclusive Growth (June 12, 2019). Available at SSRN: https://ssrn.com/abstract=3338442 or http://dx.doi.org/10.2139/ssrn.3338442

Gihoon Hong (Contact Author)

Pusan National University ( email )

mulgeumup beomyeli
Pusan 609-735, 50612
Korea, Republic of (South Korea)

Soyoung Kim

University of Tokyo ( email )

Yayoi 1-1-1
Bunkyo-ku
Tokyo, Tokyo 113-8657
Japan

Geunhwan Park

Pusan National University ( email )

mulgeumup beomyeli
Pusan 609-735, 50612
Korea, Republic of (South Korea)

Seung-Gyu Sim

Aoyama Gakuin University ( email )

4-4-25 Shibuya, Shibuya-ku
Tokyo, 150-8366
Japan

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