The Negative Effects Of Gender Inequality And Economic Development

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There is now substantial evidence of the negative effects of gender inequality on economic growth. Gender disparities, whether in education, pay or employment, (seem to) harm the growth of all countries, both developed and developing. So far, the economic case for gender equality and female empowerment has gained stronger attention in the case of developing countries where women enjoy far less rights and opportunities compared to developed ones. Over the last decades in particularly, women in industrialized countries have gained equal rights and opportunities and by now even exceed men in educational achievements. It still exists though a large difference, which is less easy to measure, in labour force participation, income and power. For …show more content…
They interpret this positive effects as a reflection of a large gap in schooling between males and females, which consecutively is viewed as a sign of backwardness and greater potential for improvement. These results were later challenged by several studies which showed that this positive sign was due to imprecisions in the model: an omitted dummy variable (Dollar & Gatti, 1999) or according to another study, a problem of multicollinearity (Klasen, 2002). Later research confirmed that, not only discriminating young girls in education had a negative impact on growth but also that, girls tended to have higher marginal returns to education with respect to their male counterparts (World Bank, 2001) (Knowles, et al., 2002). As a matter of fact, inequality in education has a direct effect on growth through a reduction of the average amount of human capital available (Dollar & Gatti, 1999), by restricting the pool of talents which will be available in the labour force. Their results similarly suggest that a better access to education by females is more relevant for the growth of middle-income countries. Moreover, they find strong and consistent evidence that increases in per capita income lead to improvements in different measures of gender inequality. An instrumental effect of disparities in …show more content…
Discrimination in education is more commonly associated with developing countries than with industrialized ones. Gender gaps in education have been declining: in primary education they have been largely closed even in the least developed countries; in secondary education, the ratio of female to male enrollment averages 97 percent and women are now more likely to be enrolled in tertiary studies than men. However, literacy rates are still higher for men than for women, particularly in South Asia and East and North Africa

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