Gender Inequality and Economic Growth: Evidence from Industry-Level Data

43 Pages Posted: 23 Jul 2020

See all articles by Ata Can Bertay

Ata Can Bertay

Sabanc─▒ University; Tilburg University - European Banking Center

Ljubica Dordevic

International Monetary Fund (IMF)

Can Sever

International Monetary Fund (IMF)

Date Written: July 1, 2020

Abstract

We study whether higher gender equality facilitates economic growth by enabling better allocation of a valuable resource: female labor. By allocating female labor to its more productive use, we hypothesize that reducing gender inequality should disproportionately benefit industries with typically higher female share in their employment relative to other industries. Specifically, we exploit within-country variation across industries to test whether those that typically employ more women grow relatively faster in countries with ex-ante lower gender inequality. The test allows us to identify the causal effect of gender inequality on industry growth in value-added and labor productivity. Our findings show that gender inequality affects real economic outcomes.

Keywords: Economic growth, Population growth, Labor force participation, Infant mortality rates, Manufacturing sector, economic development, gender inequality, WP, female share, GII, value-added, percentile

JEL Classification: O40, J16, O1, O47, E01, E2, F16, O4, L31

Suggested Citation

Bertay, Ata Can and Dordevic, Ljubica and Sever, Can, Gender Inequality and Economic Growth: Evidence from Industry-Level Data (July 1, 2020). IMF Working Paper No. 20/119, Available at SSRN: https://ssrn.com/abstract=3658594

Ata Can Bertay (Contact Author)

Sabanc─▒ University ( email )

Orhanli
Istanbul, Tuzla 34956
Turkey

HOME PAGE: http://www.atabertay.com

Tilburg University - European Banking Center ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

Ljubica Dordevic

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Can Sever

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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